Butter

Butter, a London-based fintech company established in 2017, operates in the burgeoning Buy Now, Pay Later (BNPL) market. The firm was founded by Timothy Davis, Stefan Hobl, and Nik Haukohl. The initial concept for the company stemmed from co-founder Timothy Davis's frustration with the lack of flexible payment options while planning a holiday. This experience led to the creation of what was originally a BNPL travel agency, allowing customers to book trips and pay for them in instalments after they returned.

The company achieved full Financial Conduct Authority (FCA) regulatory status in 2017, a key milestone that underscores its focus on responsible lending. When the COVID-19 pandemic severely impacted the travel industry, Butter pivoted its business model. Leveraging its existing technology, the company launched a universal BNPL shopping app, expanding its services beyond travel to all online retail sectors. This strategic shift allowed the company to adapt and grow, attracting over 100,000 users.

Butter's core product is a mobile application that enables consumers to purchase items from any online store and spread the cost over two, three, or four monthly payments. A distinct feature of its service is the "over-the-top" (OTT) solution. This technology allows customers to shop at any online retailer without requiring a direct technical integration between Butter and the merchant. The in-app universal checkout handles the payment to the retailer, and the customer then repays Butter in instalments. The platform emphasizes responsible lending by using open banking and machine learning to assess affordability, ensuring customers can only borrow what they can manage. The business generates revenue through its lending operations. In March 2021, the company secured £15.8 million in a funding round led by BCI Finance, the credit arm of venture builder Blenheim Chalcot, along with other private angel investors, to accelerate the app's rollout.

Keywords: Buy Now Pay Later, BNPL, fintech, consumer finance, instalment payments, online shopping, mobile payments, travel finance, FCA regulated, open banking, lending platform, ecommerce financing, flexible payments, Timothy Davis, Stefan Hobl, Nik Haukohl, point-of-sale finance, digital credit, responsible lending, shopping app, universal checkout