“Joe is the first BNPL addressing directly consumer in Europe and our goal is to reach 500 000 users by 2022” by Kevin OHANA – Co-Founder& CEO
We launched the beta version of our App in late 2020 and commercially launched in February 2021. At the end of August 2021, we reached more than 80,000 users, who downloaded the app and signed up. We received more than 15,000 applications for funding.
Our goal is to reach at least 100,000 users by the end of the year, and 500,000 users by the end of 2022. We will open a new country in 2022 probably in Southern Europe in order to become an international company. Currently, Joe’s team is composed of 12 people, and we are already planning to be more than 25 by the end of 2022.
Who do you use for financing?
We have contracted with a banking partner in order to use their license and distribute our solution. We use our own score, our own UX and our partner takes care of the financing and the legal aspects.
How do you carry out the scoring?
We have developed our own scoring system and aggregate more than 300 entry points for each user: banking data, customer’s information, user’s information, email, device, credit card, Stripe fraud databases etc… At the end, more than 80% of our users are eligible for funding. Once the score is calculated, we notice the client of his maximum capacity for installments.
During the onboarding process, we require the user to connect his bank account and we are the first to provide a sustainable scoring system where we integrated all the debt and installments of our users.
What percentage of users agree to give access to their bank accounts?
What is your default rate?
We are in the low range of market standards. However, our fraud risk is near 0%.
What commission do you charge?
Between 2.5 and 3% depending on the amount. If the user selects a transaction within our registered merchants, it’s zero interest transaction.
The commissions charged by some BNPL players on late payments and unpaid invoices represent for some a significant part of the turnover. What about you?
We have chosen to not apply any additional fees for late payments. We are fully transparent regarding our credit policy and we don’t charge any additional fees to our clients.
What is your acquisition strategy?
Our acquisition strategy is B2C and divided into 3 mains segments: Digital – Paid Marketing, Distribution and Organic.
We focused on organic in order to not rely on marketing platform and more than 30% of our monthly acquisition is organic and it’s increasing every month. We are very close to our client in order to build a strong and stable acquisition.
How do you deal with competition from historical players such as Floa or Oney, but also from new, well-funded players such as Alma, Clearpay or even Klarna ?
We know that there will be competition, but we are among the first players in the BtoC BNPL. By doing so, we have an opportunity to have a much bigger impact into both consumer finance and ecommerce. We are convinced about the BtoC as we maintain a good level of risk and provide the best tailor-made solution for our clients.
In addition, we have cross selling opportunities and want to provide other features to our clients as for example loyalty and cashback programs.
Within the next months, we will be announcing new features and partnerships.
Do you plan to offer deferred payment?
It’s under discussion, the door is open. But it impacts many things, especially in terms of regulation. We are planning to release this feature by 2022 and offer pay later solutions.
How many employees does Joe have?
We are 12 and we should be at least 25 next year.
How do you finance yourself?
In late 2020, we raised one million euros from business angels, including Jean-Baptiste Hironde, Guillaume Lestrade and Salomon Aiach.
We plan to close our next round by the end of the year.
You are at platform58, La Banque Postale’s incubator. Will you be working with the group?
We were accepted in June and discussions are ongoing with several entities of the group in order to create synergies.