Sacra estimates that Scalapay generated $62 million in revenue in 2024, up 63% from $38 million in 2023. The company has demonstrated strong growth momentum, with revenue increasing 79% from $21 million in 2022 to 2023 levels.

The company's revenue model is diversified across multiple streams. Merchant revenue remains the largest component at $40.2 million in 2024, though its share of total transaction volume decreased from 3.3% to 2.7%. Customer revenue nearly tripled from $5.1 million in 2023 to $14.8 million in 2024, primarily driven by $12.2 million in late fees along with rescheduling and customer fees.

Affiliation revenue showed significant growth, jumping from $478,000 to over $3.9 million in 2024. Total transaction volume reached over $1.5 billion in 2024, up from $922.9 million in 2023, supporting 4 million active customers across 7,000 merchants.

The company's revenue represents a steady 4.1% of total transaction volume, indicating consistent monetization efficiency as the platform scales.

Scalapay has raised approximately $803 million in total funding across multiple rounds. The company's most recent funding was a €70 million Scale-Up Debt round from the European Investment Bank in December 2025, specifically earmarked for product expansion and European rollout.

The company's major equity funding occurred in 2022 with a $497 million Series B round in February, followed by a $27 million Series B extension in May from Poste Italiane, bringing total funding at that time to $727 million.

Key investors include Tencent, Willoughby Capital, Tiger Global, Poste Italiane, the European Investment Bank, and Fasanara Capital. The company has also secured significant debt facilities, including a €3 billion receivables securitization facility with BNP Paribas in 2024 to support balance sheet capacity and growth.

Scalapay is a buy-now-pay-later platform that allows customers to split purchases into interest-free installments. At checkout, shoppers select Scalapay as their payment method, pay only the first installment, and receive their goods immediately while the remaining payments are automatically debited monthly.

The core offering includes Pay-in-3, where customers make three payments over two months, and Pay-in-4 with payments spread over three months. The platform also offers Pay-Later-14-Days for fashion and travel purchases, allowing customers to pay the full amount two weeks after shipping.

For online purchases, customers go through a streamlined signup process requiring email, mobile number, ID verification, and card details, typically taking 2-3 minutes. The platform shows a clear payment plan with specific dates and amounts before customers confirm their purchase.

Scalapay extends beyond e-commerce through its mobile app and Scalapay Club subscription service. Club members can generate barcodes or use Tap-to-Pay virtual cards for in-store purchases at over 300 physical locations, along with benefits like store discounts, purchase protection, and travel insurance.

The platform integrates with major e-commerce systems through native plugins for Shopify, WooCommerce, Magento, VTEX, and Cegid Retail POS. Merchants can typically implement Scalapay in under one day using API keys and widgets.

Scalapay operates a B2C buy-now-pay-later model that generates revenue from both merchants and consumers. The company charges merchants fees for facilitating transactions and providing conversion-boosting payment options, while also collecting fees from consumers for late payments and service usage.

The platform's merchant revenue model is based on transaction fees, representing 2.7% of total transaction volume in 2024. This provides merchants with increased conversion rates and higher average order values in exchange for the service fee.

Consumer monetization has become increasingly important, with customer revenue growing from 0.6% of total transaction volume in 2023 to 1.0% in 2024. This includes late fees capped at low amounts, rescheduling fees for payment flexibility, and subscription fees for premium services through Scalapay Club.

The company maintains an asset-light model by partnering with financial institutions for funding rather than holding receivables on its balance sheet. The €3 billion securitization facility with BNP Paribas allows Scalapay to originate loans while transferring credit risk to institutional partners.

Scalapay's gross profit margin improved to 1.8% of transaction volume in 2024, with contribution profit margins reaching 38.4% of total revenue. The company achieved monthly breakeven in 2025 and expects full-year profitability in 2026.

Klarna represents Scalapay's primary global competitor, with 100 million users and 675,000 merchants following its September 2025 IPO at a €15 billion market capitalization. Klarna has returned to profitability and leverages AI to reduce operating costs while partnering with Adyen for 450,000 in-store terminals and Apple Pay for installment services in Italy and France.

PayPal Pay Later operates through an off-balance-sheet model with a renewed €65 billion KKR flow arrangement, bundling installments with PayPal's wallet across 30 million European merchants. While PayPal offers superior checkout ubiquity, it has weaker millennial brand appeal compared to dedicated BNPL applications.

Local European BNPL providers like Alma in France and SeQura in Spain compete directly in Scalapay's core Southern European markets. These companies often have deeper local merchant relationships and regulatory knowledge, while securing dedicated warehouse credit lines from institutions like Castlelake and Citi.

Alma recently secured a €3 billion facility with Castlelake, while SeQura obtained a €410 million facility from Citi and M&G, demonstrating the competitive intensity around funding access in the European market.

Major payment processors including Adyen, Stripe, and Nexi increasingly embed third-party BNPL offers directly at checkout, commoditizing the installment user experience and pressuring standalone BNPL providers on margins.

Apple Pay's integration with Klarna in Italy and France, along with similar partnerships across payment infrastructure, creates distribution advantages for larger players while making it harder for regional specialists like Scalapay to maintain direct customer relationships.

Scalapay's five-year exclusive partnership with Marqeta enables the issuance of single-use virtual cards for both e-commerce and in-store payments, expanding addressable acceptance from 10,000 partner merchants to potentially millions of card-accepting locations.

Travel transactions represent the fastest-growing vertical, increasing 46.7% year-over-year in 2025 through partnerships with ferry operator Grandi Navi Veloci and tour operator Alpitour. Expanding beyond fashion and beauty into discretionary travel, hospitality, and ticketing significantly increases average order values and take-rate revenue per transaction.

The 2024 alliance with Trustfull embeds AI fraud and identity scoring into Scalapay's platform, creating opportunities to unbundle these risk-as-a-service modules and sell them to third-party lenders as the company moves up-stack into data services.

Direct POS integrations with Cegid Retail's 1,200+ global customers and multilender platform Lendismart provide one-click distribution into thousands of brick-and-mortar stores across France, Spain, Portugal, and Italy. These physical retail segments remain dominated by cards and cash, representing significant untapped opportunity.

New API connections to Adyen's global acquiring platform expose Scalapay to Adyen's 250,000+ merchants, while Marqeta's issuer-processor infrastructure accelerates merchant onboarding capabilities.

The €70 million growth loan from the European Investment Bank provides non-dilutive capital specifically for product expansion and European rollout, enabling localization in Germany, Benelux, and the Nordics ahead of 2026 Consumer Credit Directive implementation.

The €3 billion receivables securitization facility with BNP Paribas provides balance sheet capacity to support geographic expansion while maintaining the asset-light operational model across new markets.

Regulatory tightening: The revised EU Consumer Credit Directive and forthcoming UK BNPL regulations will require affordability checks, credit bureau reporting, and clearer fee disclosures, raising compliance costs and favoring players with bank-grade risk management systems. These regulatory changes could significantly impact Scalapay's streamlined onboarding process and cost structure.

Funding market volatility: Scalapay's asset-light model depends on continued access to institutional funding through securitization facilities and credit partnerships. Any tightening in credit markets or changes in institutional appetite for BNPL receivables could constrain growth and force the company to hold more risk on its balance sheet.

Platform commoditization: Major payment processors and big tech platforms increasingly embed BNPL functionality directly into checkout flows, reducing the differentiation of standalone BNPL providers and pressuring merchant fees. This trend toward commoditization could erode Scalapay's direct customer relationships and pricing power over time.