Sileon AB (publ) is a global fintech company that offers an innovative card-based Buy Now Pay Later (BNPL) SaaS functionality to banks, card issuers, and fintechs. With Sileon’s BNPL product, customers can add their own BNPL to their existing credit or debit card base.
Sileon is an approved payment institution by the Swedish Financial Supervisory Authority and is listed on the Nasdaq First North Growth Market. The Certified Adviser for the company is Erik Penser Bank AB.
Erik Penser Bank AB, Box 7405, 103 91 Stockholm
Telephone: +46 (0)8-463 80 00
For further details, read Erik Penser Banks’s extensive report on Sileon, released in November 2022.
The BNPL landscape
The market for BNPL is accelerating significantly and is estimated to reach a transaction volume of $680 billion globally by 2025. With transparency, convenience, and spending control as top reasons for using BNPL options, the number of global BNPL users is foreseen to surpass 1.5 billion by 2026.
As a result of more consumers, especially the younger generations, preferring alternative payment methods over card payments, banks have witnessed a consequential credit market share loss. To stay in the game and on top of their offering, they must rapidly update their systems to maintain consumer relevance.
Building and maintaining a scalable and market-agnostic BNPL functionality in-house is, however, highly complex and expensive. Partnering with a BNPL functionality provider thus becomes the answer for any bank wanting to leverage the growing trend and go fast to market with a BNPL offering.
Sileon holds a unique market position as a software supplier and BNPL specialist, offering international card-based BNPL functionality to banks, card issuers and fintechs.
With Sileon’s white-label BNPL SaaS Platform and Solution modules, customers can swiftly add BNPL to their existing credit or debit card base. The Platform, which specializes in handling large volumes of BNPL transactions and different BNPL scenarios, is connected to the customer’s financial system via APIs.
Using Sileon’s high-end BNPL technology allows customers to run their B2B or B2C BNPL at pre-purchase, point of sale or post-purchase. It enables them to meet the high consumer demand for flexible and convenient payment options, even after the initial transaction has been completed. For example, giving end users the possibility to convert a completed card payment or invoice into a partial payment directly in their bank app.
A word from the CEO
“Banks and card issuers who leverage Sileon’s card-based BNPL functionality reach new customer segments with responsible consumer lending and thereby dramatically increase revenues.
Besides, adding BNPL to their existing credit or debit card base will allow them to stay relevant in a highly changeable environment.”
Sileon’s strategy and business model
Sileon’s primary goal is to ensure banks, card issuers, and fintechs stay relevant within consumer lending and revitalize their card offering to exceed end users’ expectations of flexible and modern payment methods.
While traditional BNPL companies in the industry tend to offer a comprehensive BNPL solution including credit risk, Sileon’s customers perform the credit lending themselves and therefore attain revenue based on the credit but also handles the risks that come with it.
Sileon’s flexible and transparent SaaS business model generates revenue partly based on a fixed recurring fee, as well as smaller variable fees governed by the number of transactions on the Platform.
Sileon’s strategy is to sell directly towards prioritized European business areas. Nonetheless, with the growing number of business inquiries from non-European prospects, moving beyond borders and scaling globally is given.
Partnerships with major international payment companies, like VISA, and other strategic sales through technical platform partners give Sileon access to a widespread network of contacts and speed up the international expansion process further.