With the launch of its Cembra Pay product, Cembra Bank aims to further advance it's Buy Now Pay Later solutions in Switzerland. The bank smells a multi-million francs business opportunity.
Make purchases and pay for them at a later date, or «Buy Now Pay Later» (BNPL) in the parlance of our times. This form of payment has become increasingly popular over the years with the advent of online shopping, and because such purchases are often made interest-free over a specified period, it is an attractive form of short-term borrowing.
For Cembra Bank, BNPL is steadily gaining importance in Switzerland, where it sees an opportunity to make millions.
New Product Launch
To seize on it, Cembra is launching a new business unit called Cembra Pay by bundling its subsidiaries Swissbilling and Byjuno, according to a statement Wednesday. The new brand expands on its offerings of bill payment solutions announced in November.
Cembra Pay offers a wide range of payment options. For consumers, purchases would be simple, flexible, and secure, while merchants and partners would be able to offer their sales without risk or extra effort.
Ambitious Plans
Cembra Pay CEO Christian Stolz wants his product to become the go-to partner in Switzerland for modern and compelling bill payment solutions for online- as well as point of sale (POS).
The bank has ambitious plans for the segment. As reported by finews.com, the acquisition is expected to make a positive contribution to net income starting this year, with integration costs estimated in the four to five million Swiss francs range.
Cembra expects the payoff to be a profit of between 10 and 20 million francs for its bill payment solutions business by 2026 at the latest.
