Sunbit recently secured $355 million in funding from JPMorgan Chase, Mizuho, and Waterfall Asset Management to accelerate its consumer loan offerings nationwide. This investment allows Sunbit to deepen its reach in auto, dental, and eyewear sectors by enhancing its in-person payment solutions across 47 states.
Focused on Non-Discretionary Purchases
Sunbit differentiates itself from traditional online buy-now-pay-later (BNPL) providers by concentrating on non-discretionary, repeat purchases made in physical stores. Whereas many BNPL competitors largely target online discretionary spending, Sunbit’s approach addresses essential purchases like vehicle maintenance, dental procedures, and eyewear upgrades, which tend to happen repeatedly and are urgent for consumers.
Merchant Fee Structure and Revenue Model
The company charges merchants fees ranging between 8% and 9%, which is comparatively higher than competitors such as Affirm and Klarna. Although this fee structure may appear steep, it contributes to approximately 45% of Sunbit's total revenue, reflecting a sustainable business model focused on value-added service for merchants. This premium enables Sunbit to provide seamless in-store financing solutions tailored to high-frequency, essential spending.
Innovative Co-Branded Credit Card Launch
Sunbit has recently introduced co-branded credit cards in partnership with Ollie’s, aiming to strengthen merchant relationships and offer additional financing flexibility. This initiative is designed to cement ongoing partnerships by providing consumers with branded credit lines that integrate with their everyday spending, boosting customer loyalty and merchant sales alike.
Loan Volume, Approval, and Interest Rates
The platform issues over 100,000 loans each month, maintaining a high approval rate of nearly 90%. The average loan size stands at about $1,000, with interest rates approximating 20%. Sunbit differentiates itself by avoiding late fees and origination fees, making the service appealing to consumers with average credit scores around 700. This strategy balances risk mitigation with accessibility, attracting a broad consumer base seeking manageable credit terms.
Wide Merchant Integration and Technology Use
Supporting over 9,000 car dealerships and 12,000 dental offices, Sunbit provides iPad-based financing software that streamlines in-store loan applications. This technology enhances merchant integration by simplifying the loan process, reducing wait times, and improving the overall experience for customers and sellers. The iPad interface allows merchants to offer financing at the point of sale efficiently.
Positioning in the Consumer Credit Landscape
Sunbit’s focus on physical retail sectors such as automotive repair, dental care, and eyewear aligns with growing consumer demand for flexible financing of necessary services. By prioritizing repeat and essential purchases, Sunbit stands out from purely online BNPL competitors. The company’s financing model supports merchants by increasing sales conversion and driving customer retention through tailored credit solutions.
Sunbit’s recent funding round and strategic initiatives position it well to expand consumer credit options in essential service industries. The company’s technology, merchant partnerships, and loan conditions create a compelling alternative to existing credit models, meeting the needs of both retailers and consumers in the physical retail space.