Ratepay increases commission income to almost 100 million euros

The Berlin-based start-up increased its commission income by 70% in 2021. Total income turned positive.

Fintech Ratepay generated a surplus of ten million euros in the last financial year. The start-up reported a net loss of over 15 million euros for 2020. This is shown by the company's newly published business figures.

The start-up generated commission income of 96.5 million euros, which corresponds to a year-on-year increase of 70.7%. "The increase was mainly achieved through a higher gross transaction volume, which rose by 63.5%, as well as a change in the product mix in favour of the instalment product," the report states. Compared to the previous year, the transaction volume rose from 1.5 billion to 2.8 billion euros. The start-up was able to benefit from general growth in online retail. The start-up is thus benefiting from the "buy now, pay later" trend - more and more people are turning to microloans and paying either on account or in installments. Installment payments in particular are controversial among consumer advocates due to the confusion that could arise for customers.

Miriam Wohlfarth founded Ratepay in December 2009. The Berlin-based company offers payment solutions with a payment guarantee in the DACH region. These include purchase on account, payment by installments with immediate confirmation, direct debit and prepayment. In contrast to providers such as Klarna, the provider is not aimed directly at end customers, but at other companies.