Who we are, and how the business works
A payment platform is only as trustworthy as its incentives. This page covers who operates Scalapay, how it is regulated, and — the part most companies skip — exactly where the money comes from.
Why we are paid by retailers, not by your interest
This is the most useful thing to understand about any pay-later provider, because it explains what the company actually wants you to do.
- Retailers pay a transaction fee on each order, because offering a split raises their average order value and completed checkouts.
- They are paid in full upfront and we carry the risk of non-payment, which is what the fee buys them.
- Pay in 3 and Pay Later cost you nothing when paid on time. The margin sits on the merchant side, not on your balance.
- Late fees are capped rather than uncapped, because a customer who cannot finish a plan is a loss for us, not a revenue line.
Illustrative proportions only; actual merchant pricing is quoted per business. The point is which side the revenue comes from.
Six things that are checkable
Facts rather than adjectives.
Founded in 2019
Built around European retail first, now operating across multiple markets including the US.
A regulated payment institution
Operating through a licensed entity subject to financial supervision and conduct rules. See licences →
Bank-funded, not deposit-funded
Purchases are funded through partnerships with banking institutions rather than customer deposits.
Longer financing is a bank product
Plans of 6 to 36 months come from a licensed banking partner with full consumer credit disclosures. See terms →
11 million shoppers, 10,000 brands
With a default rate of around 1%, which is what keeps the merchant-funded model workable.
Identity verification is mandatory
Not an optional step. It is a regulatory requirement and it is also what makes account takeover harder.
What we will and will not do
A payment company should be judged on its edges, not its homepage.
What we commit to
Things you can hold us to.
- Showing the full schedule before you confirmAmount, number of payments and dates, every time.
- Capping late feesA known maximum rather than an open-ended charge. What happens →
- Free reschedulingMoving a due date before it lands costs nothing and is built in.
- Saying when another provider is betterOur comparison pages name the cases where a competitor fits you better. See the roundup →
What we will not claim
Things we would rather be straight about.
- That splitting reduces the costIt moves it. On plans with a rate, it increases it.
- That longer financing is freePlans of 6 to 36 months can carry real interest, shown at checkout.
- That this is right for everyoneIf money is already tight, a plan you cannot finish costs more than it saves. Free help →
- That we are neutralWe sell payment plans. Our guides are written with that in mind, which is why they include the downsides.
About Scalapay FAQ
The questions worth asking of any payment provider.
Who is behind Scalapay?+
Is Scalapay a bank?+
How does Scalapay make money?+
How many people use Scalapay?+
Does Scalapay want customers to miss payments?+
Where is Scalapay regulated?+
Keep reading
Trust
Is Scalapay safe to use?
Licensing, what protects a payment, and which risks are actually real.
Credit
Does buy now, pay later affect your credit score?
What shows up on your credit file for short splits versus longer financing.
Straight talk
Using pay-later plans without losing track
How the plans go wrong, the warning signs, and where to get free help.
Read the terms.
Then decide.
Every plan shows the amount, the payments and the dates before you confirm anything.