PayMonths

PayMonths, operated by FiNovus Lab, is a fintech company founded in 2020 by CEO Jang Jong-wook. With a background in M&A advisory at Deloitte and private equity at JC Partners, Jang Jong-wook identified an opportunity to apply digital transformation to the financial sector, which led to the creation of PayMonths. The company has secured a total of 3.5 billion won in investments, including a Series A round led by Kakao Pay.

The firm operates a B2B Buy Now, Pay Later (BNPL) platform designed to address financial liquidity challenges for small and medium-sized enterprises (SMEs). Initially focusing on Seoul's Dongdaemun fashion market, PayMonths enabled online retail sellers to defer payments for inventory purchases, a significant shift in a market dominated by cash transactions. The service has since expanded to other B2B sectors, including food materials, pet supplies, and maintenance, repair, and operations (MRO) goods.

The business model centers on accounts receivable factoring. When a retail business (buyer) makes a purchase from a wholesale B2B online mall (supplier) using the PayMonths service, PayMonths pays the supplier upfront, typically within one business day. The buyer then repays PayMonths at a later date, usually within 30 to 60 days, allowing them to manage cash flow more effectively. PayMonths generates revenue through transaction fees and interest on these deferred payments. The platform uses a proprietary machine learning-based credit evaluation model to assess risk and determine credit limits for its users, which mitigates the risk of default.

The service is delivered via an API that integrates into B2B online marketplaces, offering a deferred payment option at checkout. For retail businesses, this provides access to working capital without traditional business loans. For the B2B platforms, it removes the risk of non-payment and can help increase transaction volumes. By digitizing payments and leveraging alternative credit data, PayMonths provides a financial solution for a segment often underserved by traditional financial institutions.

Keywords: B2B payments, Buy Now Pay Later, BNPL, SME financing, fintech, accounts receivable factoring, deferred payment, credit evaluation, Dongdaemun market, retail financing, supply chain finance, working capital solutions, online marketplace payments, FiNovus Lab, Jang Jong-wook, Kakao Pay, small business loans, ecommerce financing, B2B lending, inventory financing, South Korea fintech