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

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Keith Nealon, CEO of Vyze, said traditional retail financing relies on an outdated retail financing model, which results in credit rejection rates that average 50 percent in stores and up to 75 percent online.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