Israeli credit startup obtains investment, VISA partnership

ChargeAfter, a Ramat-Gan, Israel-based startup whose software enables consumers to obtain tailored point-of-sale credit options, said it received a “substantial” investment and has established a strategic partnership with the credit card provider Visa Inc.

The Israeli company, founded in 2017 by CEO Meidad Sharon, did not disclose the amount invested, but Sharon said “this is a strategic and substantial investment.” The company had raised, before Visa funds, some $ 9.5 million in seed and Series A financing.

Visa’s investment follows its 2018 investment in an Israeli startup On behalf of, to support small business growth with easy access to capital and financing.

The partnership will see Visa market and distribute ChargeAfter to its more than 16,000 issuing banks, merchant acquirers, merchants and cardholders around the world, Sharon said in a telephone interview.

ChargeAfter CEO and Founder Meidad Sharon (YouTube screenshot)

The strategic partnership with Visa will help provide Visa cardholders with more choice and flexibility in payments when purchasing goods and services in-store or online, ChargeAfter said in a statement Wednesday.

Through this partnership, Visa’s network of vendors, acquirers and issuing banks will have the ability to distribute a wide range of point-of-sale finance and credit instruments to online and in-store vendors around the world at using ChargeAfter software, the company said.

The collaboration will also allow Visa’s global network of issuing banks to participate in ChargeAfter’s network as direct lenders, the statement said.

The startup aims to create tailored credit options for consumers at the time of their purchases, whether online or in-store.

“Traditional banks like BBVA, Synchrony and now VISA are all realizing that consumers demand alternative payment methods, or APMs, and elastic, dynamic payment options,” said Sharon. “One of the reasons for the rapid growth of alternative payment methods is the fact that 63% of millennials do not have a credit card and by the end of 2020, 40% of consumers will be in the millennial cohort and of generation z. who expect payment methods other than credit in the form of plastic. Merchants, both online and retail, need to prepare accordingly and ensure they have the payment tools and methods available for their consumers to pay at checkout. “

When a consumer applies for a credit card, the issuing entity can approve or deny the request. But once the credit card is issued, “you’re tied to that line of credit on every purchase,” he said.

“It is not profitable for the consumer,” he said. “We are changing all of that.”

What ChargeAfter does is allow consumers to decide in-store or on the ecommerce site (point of sale) how they want to pay: cash or credit.

On a website, consumers receive a message indicating that “funding is available” for that product. If consumers are interested in financing, they can click on the option and fill in four data points: cell phone, date of birth, social security number, and annual income. ChargeAfter verifies the data, then goes to the banks it works with for a number of funding options.

“It’s no longer a suit that fits everyone,” Sharon said. Every consumer gets credit offers, such as installment loans or an open revolving line of credit, that are best for them, he said.

In a store, the person at the checkout would ask if they are interested in credit financing, and if so, provide their cell phone number and then get a link through which to enter their contact details.

“We present the credit options in a clear manner,” said Sharon.

Merchants and consumers are showing they see “value” in ChargeAfter’s offering, he said.

ChargeAfter software is used by online stores including, and Sharon said “several” banks are already working with the startup.

Visa’s investment and the strategic partnership formed “is probably the best testament to our funding platform,” said Sharon. “It’s the next wave of credit.”

The other investor in ChargeAfter includes venture capital funds such as PICO Venture Partners, Propel Venture Partners, BBVA, Synchrony and Plug and Play VC.

The startup is headquartered in Sunnyvale, California, and offices in New York and Tel Aviv.

“Consumers are increasingly demanding more choice and flexibility when making a payment, whether for their daily needs or for high-value items. By working with ChargeAfter, we aim to make it easier for sellers and financial institutions to offer a range of tailor-made and personalized financing options at the point of sale, allowing consumers to manage their payments in a way that is convenient for them. Said Shahar Friedman, director of the Visa Innovation Studio in Tel Aviv.

The startup is looking to triple its Israeli workforce by the end of the year, Sharon said. The company currently employs 30 workers in Israel and 10 in the United States.

(This updated version corrects the amount of funds raised to $ 9.5 million)

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