Buy now, pay later business Scalapay has raised €40 million ($48 million) in funding.

The money will be used to rollout the company’s service across Europe, further develop its technology, and also begin plans to expand to the US.

The seed round was led by Fasanara Capital, but also included Baleen Capital, and Italian Family Office Ithaca Investments.

The Milan-based start-up recently signed a partnership with Raisin Bank, a leading pan-European Banking-as-a-Service provider, whose passporting services will support the company’s EU rollout.

Scalapay’s buy now, pay later service breaks payments into three instalments with zero interest.

According to the start-up, the average value of orders when customers pay with its instalment option is 49 per cent higher.

"Our mission is to empower merchants to deliver magical customer experiences," said Simone Mancini, co-founder and chief executive, Scalapay. "When comparing solutions used by merchants to improve customer experience and their bottom line, interest-free instalments stand apart for the high return on investment. We immediately have a big impact on revenues and the integration effort is minimal."

He added: "This new funding allows us to support our pipeline of merchants across Europe and further our mission by giving merchants exciting tools to make their ecommerce experience magical."

Scalapay has more than 1,000 retail customers across France, Italy, and Germany, including Decathlon, Calzedonia, Bata, Aosom and Bricobravo.

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