Last month, Accrue Savings announced a $25M Series A led by Tiger Global. I led their seed round last summer and I am thrilled to continue my support along with Box Group, Red Sea Ventures, Ground Up Ventures, Good Friends, Silas Capital and many other great investors.
Accrue Savings is a merchant-embedded shopping experience that rewards customers who save for their favorite products and services. In other words, Save now; Buy later. Retailers love it because they reach new customers, they optimize their conversion rate, and they can reduce customer acquisition costs by creating a relationship with the customer early on in their purchasing journey. While the benefit to retailers is obvious, it’s also a win-win for consumers because they get the products they want for less, without the regret of debt.
What’s even more exciting about the business to me is the market timing. Not paying for something when you buy it has never been more popular. In fact, thirty percent of consumers now choose credit cards or Buy Now, Pay Later services for their online transactions. And, with the rise of Buy Now, Pay Later, Americans’ reliance on “credit” has become more widespread. The average credit card balance in the US is roughly 2x the average monthly take- home pay, while credit card debt has hit an all-time high of $930 billion. We truly live in a credit-driven buy now, pay later world.
So why are there no incentives for all of the customers who choose to save up for a purchase? If brands want to put their customers first, why don’t they offer payment options that don’t put them in debt? These were the first two questions Michael Hershfield asked me when I first met with him to talk about Accrue Savings. Very quickly in that first meeting, we both decided that needed to change and, with the right product, there was an opportunity for merchants to create a deeper relationship with their customers earlier on in their buying journey.
I could not be more excited for what’s ahead for this company. Accrue has opened my eyes a bit more to what’s possible at the intersection of fintech and ecommerce. The radical transformation of financial services is at the very beginning, and I’m convinced that companies like Accrue will lead the way. I’m grateful to be a small part of the journey.