New York Fintech Katapult Recruits Executives After Headquarters Move to Plano »Dallas Innovates
Following its move to North Texas, Katapult, an omnichannel hire-purchase platform, is taking great strides to grow its footprint in the region.
The Katapult Group, which employs approximately 100 employees, is a provider of risk-free e-commerce lease-to-purchase options for consumers in the U.S. The intention is to provide alternative solutions to retailers and to consumers: businesses to expand their customer base, increase traction and increase revenue.
Non-premium consumers fall between subprime and prime, which means their credit scores do, too. CNBC notes that subprime borrowers are generally not eligible for the best credit cards and concessional loans (while senior borrowers have more access).
With Katapult focusing only on non-bounties, they are reaching consumers who might typically be denied funding from companies focused on buy it now, pay later (BNPL), like Affirm and Afterpay.
According to the company, its partners who have implemented lease-to-own point-of-sale payment solutions are able to reach and convert new buyers, build strong customer loyalty and reduce the risk of default.
Katapult’s mission is to operate with a consumer-centric approach. The company guarantees an “efficient application and approval process” and gives its e-commerce and omnichannel partners “transparent and responsive payment terms”. So far, Katapult has partnered with hundreds of retailers across the country.
Experts have already called Katapult a leader in the pay-later market. As the COVID-19 pandemic has drastically altered consumers’ purchasing preferences, many are predicting the company to be a major player in the shift to e-commerce and alternative financing solutions.
In the first quarter of this year, Katapult completed the move of its New York headquarters to Plano. In the wake of this, the company announced a new partnership with Motorola Mobility, Lenovo’s wholly-owned subsidiary that designs and manufactures smartphones and mobile handsets.
With the deal, Katapult became a payment option for Motorola, which means its hire-purchase solution now offers credit-less or developing consumers a way to access Motorola’s mobile devices.
“Our partnership with Katapult strengthens Motorola’s mission to bring smarter technology to everyone,” Rudi kalil, Vice-president and general manager, North America at Motorola, said in a statement. “We’re excited to offer our passionate consumers another way to access the many innovations we bring to the US market.”
Following this news, Katapult brought in Tahmineh “Tammy” Maloney as the new general counsel. Maloney will be responsible for overseeing legal compliance across the company while working in parallel with COO Derek Medlin.
Most recently, Maloney was the General Counsel of E * Trade Bank, a role in which she was responsible for advising on federal and state banking regulations, mergers and acquisitions, investments, cryptocurrency, products and businesses. banking and payments. In all, she has over seventeen years of experience in legal and advisory roles, and has spent time in the fintech space, according to a press release.
“I am delighted that Tammy has joined our organization as General Counsel,” Medlin said in a statement. “His experience with leading financial services organizations and major regulatory agencies will support our strong focus on innovation and growth while maintaining our laser focus on compliance and exceptional consumer experiences.
The news comes as Katapult prepares to go public. On December 18, 2020, the company entered into a definitive merger agreement with SPAC FinServ Acquisition Corp., resulting in an enterprise value of approximately $ 1 billion to the merged company.
The transaction included a private investment of $ 150 million in public shares, led by Tiger Global Management and Neuberger Berman Funds. Once the transaction is completed, the combined company will operate under the name Katapult and trade under “KPLT” on the Nasdaq.
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