Ratepay increases commission income to almost 100 million euros

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

Fintech Ratepay generated a surplus of ten million euros in the past fiscal year. Still for 2020, the start-up reported a net loss of more than 15 million euros. This is shown by the newly published business figures of the company.

Thus, the start-up comes to commission income of 96.5 million euros, which corresponds to an increase of 70.7 percent compared to the previous year. "The increase was realized mainly due to an increased gross transaction volume, which rose by 63.5 percent, as well as a change in the product mix in favor of the installment product," the report states. Transaction volume increased year-over-year from €1.5 billion to €2.8 billion. In the process, the start-up was able to benefit from a general growth in online retail. The start-up is thus benefiting from the "buy now, pay later" trend - more and more people are relying on microcredit and paying either on account or in installments. Installment payments in particular are controversial among consumer advocates because of the confusion that could arise among customers.

Miriam Wohlfarth founded Ratepay in December 2009. The Berlin-based company offers payment solutions with payment guarantees in the DACH region. These include purchase on account, installment payment with immediate commitment, direct debit and prepayment. Unlike providers such as Klarna, the provider does not target end customers directly, but other companies.