Exclusive: Butter offers BNPL first with 10 month instalments

Butter, a Buy Now, Pay Later platform, has unveiled a new 10-month interest-free instalment payment option.

Most BNPL providers such Klarna,Afterpay and Paypal offer instalment options from 1-4 months. Butter, which started off at launch in 2017 as a travel agent, is offering the new extended options as part of the launch of its new service Butter X. Four the past four years it has offered the option to spread payments over two, three or four-month periods only.

The firm, founded by Timothy Davis, Stefan Hobl and Nik Haukohl, says it now has 250,000 users.

It has an “over-the-top” solution that enables customers to spread the cost of purchases across every store on the internet, without requiring merchants to support Butter via a technical integration.

Butter says it also uses open banking and machine learning to ensure that lending is responsible and that customers are only able to borrow amounts based on what they can afford.

It recently raised £15.8m via BCI Finance, the credit arm of London based venture builder Blenheim Chalcot, as well as a number of other private Angel investors.

Timothy Davis, Co-Founder and CEO of Butter, says it should bring a further level of flexibility and affordability to users.

“Our mission has always been to evolve the Butter offering with the consumer at the heart of what we do, whether it be responsible lending, interest-free repayments, more choice, or a greater level of flexibility.” 

“Providing the options to spread payments for six or 10 months is unheard of within the BNPL space but we believe it will further enhance our offering and so it was a natural path of progression for us.”