Tiger Global backs Accrue Savings’ ‘save now, pay later’ approach to consumer purchases

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Buy now, pay later has evolved into an alternative to credit cards, with the trend generating $100 billion in sales last year, more than four times 2020. However, even with spread out payments, debt accumulation is not going to be easy, leading to The Consumer Financial Protection Bureau will now look into this practice.,

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earn savings, founded in June 2021 by CEO Michael Hershfield, aims to re-save people with its merchant-embedded shopping experience that rewards consumers for saving for the things they want to buy.

After raising $4.7 million, the company launched in late 2021 with its product that enables merchants to offer additional payment options. Hershfield told Nerdshala that it isn’t out to replace Buy Now, Pay Later (BNPL), but as a way for brands to attract and retain people as well as help them save for items. way.

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Michael Hershfield, CEO of AQ Savings. image credit: earn savings

“Brands have a tremendous impact, and while there is a deep misnomer that Americans do not save, our own research shows that people were actually saving more during the pandemic,” he said. “How Americans save can now be tied to a brand. We, as a society, need to provide better savings tools, and that should be on a merchant’s website.”

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Acru Savings embeds the savings feature on the retailer’s website, allowing merchants to incorporate this feature into targeted email or SMS campaigns as well. When a consumer opens an account and hits savings milestones, they can receive FDIC-insured cash contributions from brands.

Because savings can take time, Hershfield felt it was too early to disclose growth metrics, but said that in its short existence, the company has amassed a client list that includes Allbirds, Casper, Polly & Bark, Smile Direct Club and Tire Agents. It initially went live with 15 customers, and he teased that the list is expected to double in the coming months.

Today, Accrue Savings raised $25 million in a Series A funding round led by Tiger Global with participation from Aglaé Ventures and Maple VC, existing investors Twelve Down, Box Group, Red Sea Ventures, Ground Up Ventures, Good Friends and Silas Capital Ventures. announced. and a group of individual investors, including UPS CEO Carol Tomei, Fanatics CEO Michael Rubin.

“Earning savings helps brands reach out to more customers and give consumers a responsible purchase option. It is a win-win,” said Alex Cook, partner at Tiger Global, in a written statement. “Michael and the Accrue Thrifts team are building a unique platform and we are thrilled to partner with them on the next leg of the journey.”

With the new capital infusion, the company’s total funding to date has reached nearly $30 million. Hershfield plans to expand the retail partnership and add employees across departments, including engineering, sales and marketing. It has 14 employees now, and expects to have about 65 employees by the end of the year.

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