Credit-fi­nancer Vyze gets $13M to up soft­ware sales

Austin American-Statesman - - BUSINESS - By Lori Hawkins lhawkins@states­ Vyze

Re­tail­ers lose tens of bil­lions of dol­lars each year when cus­tomers’ credit ap­pli­ca­tions are rejected and they can’t com­plete their pur­chase.

But many of those shop­pers are cred­it­wor­thy, and Austin-based Vyze wants to help stores save those sales.

Vyze said Thurs­day that it has raised $13 mil­lion in ven­ture cap­i­tal to ac­cel­er­ate prod­uct de­vel­op­ment and sales of its soft­ware plat­form.

The deal was led by Austin Ven­tures, with ad­di­tional in­vest­ment from Fathom Cap­i­tal and Star­vest Part­ners.

Vyze has raised a to­tal of $48 mil­lion since its launch in 2008.

Vyze’s soft­ware lets re­tail­ers pro­vide cus­tomers with fi­nanc­ing al­ter­na­tives at the reg­is­ter or dur­ing an on­line trans­ac­tion.

The soft­ware works by in­te­grat­ing with a re­tailer’s pointof-sale sys­tem in or­der to de­ter­mine fi­nanc­ing al­ter­na­tives. The op­tions in­clude store-branded credit cards, in­stall­ment loans and lease pur­chase op­tions, and are pre­sented to shop­pers as they make their pur­chases.

Keith Nealon, CEO of Vyze, said tra­di­tional re­tail fi­nanc­ing re­lies on an out­dated re­tail fi­nanc­ing model, which re­sults in credit re­jec­tion rates that av­er­age 50 per­cent in stores and up to 75 per­cent on­line.

“In con­trast, the Vyze plat­form con­nects re­tail­ers with a va­ri­ety of lenders, boost­ing ap­proval rates to up­wards of 80 per­cent,” Nealon said.

John Komkov of Fathom Cap­i­tal said, “to­day’s prac­tices are leav­ing a quar­ter of a tril­lion dol­lars

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