Drip

Drip positions itself as a strategic financial technology firm targeting the Brazilian e-commerce sector by offering a "Buy Now, Pay Later" (BNPL) solution integrated with the country's prevalent Pix instant payment system. Launched in January 2022, the company was co-founded by CEO Patrick McDougall, along with Bianca Orsini and Paulo Albuquerque. The founding team shares a background in the fintech industry, having previously worked at Nubank on projects related to Pix, e-commerce, and open banking. This collective experience appears to have directly informed Drip's mission to address perceived shortcomings in traditional credit card systems.

The company's core business revolves around a payment alternative that allows online shoppers to purchase goods and pay in up to three monthly installments without interest. To access the service, consumers download the Drip application, complete a registration and security verification process, and are assigned a personalized credit limit based on a proprietary analysis. Drip's platform features two primary product offerings: a direct integration for partner merchants, which places Drip as a payment option on their checkout pages, and a feature within the Drip app that allows consumers to shop at stores that are not direct partners. For transactions with non-partnered merchants, Drip facilitates the purchase by issuing a Bank Credit Bill (Cédula de Crédito Bancário - CCB) through a financial partner.

Drip's revenue model is centered on partnerships with e-commerce businesses. The company provides merchants with benefits such as an anticipated increase in checkout conversion by up to 20% and a rise in average order value by as much as 25%. Merchants can choose to receive their funds immediately (D+0) or in installments. For consumers, the value proposition includes the ability to make installment purchases without a credit card, enhanced by cashback rewards of up to 10%. The company has secured notable venture capital backing from firms including Acequia Capital, GFC, Possible Ventures, and an $8 million investment from SRM Asset announced in October 2023. This funding is intended to expand services and enhance user benefits, with a stated goal of surpassing R$100 million in transaction volume within a year of the investment.

Keywords: Buy Now Pay Later, BNPL, Pix, Brazil fintech, e-commerce payments, installment payments, Patrick McDougall, Bianca Orsini, Paulo Albuquerque, online shopping credit, merchant payment solutions, consumer credit, cashback rewards, mobile payments, SRM Ventures, Acequia Capital, GFC, Possible Ventures, Nubank alumni, payment gateway