Croissant Pay

About Croissant Pay

Croissant is a fintech company that has developed a 'buy now, pay later' (BNPL) solution integrated with a browser extension, designed to function on any e-commerce site that accepts credit cards. This approach broadens the applicability of its service beyond merchants who have direct partnerships, targeting online shoppers looking for payment flexibility at the point of sale. The company was founded in 2021 by John Howard, John Klose, and Vrisan Appasamy. Howard, the CEO, previously held a senior product manager role at Affirm, a prominent player in the BNPL sector, and has a background in computer science. Klose, the CTO, brings engineering experience from his time at Bread, another company in the payments and checkout solutions space. The founding team's collective experience within the fintech and BNPL industries provides them with a deep understanding of the market's technical and product challenges.

The core of Croissant's offering is a service that guarantees merchants full payment upfront for purchases, while allowing consumers to split the cost over several installments. This model aims to increase conversion rates and average order value for retailers by reducing the friction of high upfront costs for shoppers. For consumers, the platform provides an automatically generated, single-use virtual card at checkout, which can be used to complete the purchase. The payment is then split into four interest-free installments, paid over six weeks. Unlike many competitors that rely on direct merchant integrations, Croissant's browser extension enables it to work across a wider range of online stores, offering a more ubiquitous BNPL option. The company generates revenue by charging a fee to the merchants for each transaction processed through its platform.

In late 2023, Croissant secured $24 million in a seed funding round co-led by Portage and KKR's co-founder, George Roberts. This significant capital injection is intended to support the company's growth, expand its team, and enhance its product development efforts. The company positions itself as a tool for financial wellness, offering a transparent fee structure without charging late fees, a common practice in the consumer credit space. This strategy aligns with a growing consumer demand for more ethical and transparent financial products, potentially differentiating Croissant in a competitive market.