Cocoon Card Ltd (Cocoon) is a Fintech that enables businesses to rapidly grow by giving them the capability to determine which customers they should provide 0% interest payment terms to, and the capability to collect and manage those payments. Our product removes the need for 3rd party lenders, allowing businesses to serve the UK's ~14m 'thin-file' consumers that are currently rejected from mainstream 0% interest finance. Our product drives incremental profits for our business partners while increasing financial inclusion for their consumers that are currently excluded from 0% interest finance offerings.
Cocoon has developed a software platform that has two key components:
1. Risk management module:They use credit and affordability data to assess if a potential customer can pay in instalments. They predict the probability of defaults and only accept customers that meet a merchant’s specific risk appetite.
2. Instalment collection module: If they determine the customer can pay over time, they create an instalment plan and then collect the repayments from the customer on behalf of the merchant partners.
Both of these modules have been designed to work in harmony to provide a seamless customer journey that maximises conversion.
0% interest instalments means a consumer can buy something today and pay for it in the future. This is great for both consumers and businesses: consumers can spread the cost of high-value items into easy-to-manage instalments and, because of this, businesses can see a 30% sales uplift by offering instalments.
However, there are 10-14m consumers in the UK (20-25% of the adult population) that find it difficult to access credit from mainstream credit providers and are often rejected for 0% interest finance. This is because these consumers might, for example: not have previously applied for credit or have a mildly adverse credit history.
Cocoon allows businesses to serve these consumers.
Very simply, Cocoon charges a % of each transaction processed through their platform.
They are currently priced at 3.5% of each transaction processed but expect to increase this to ~6% once they are more established in the market.
Cocoon has developed a software platform that has two key components:
1. Risk management module:They use credit and affordability data to assess if a potential customer can pay in instalments. They predict the probability of defaults and only accept customers that meet a merchant’s specific risk appetite.
2. Instalment collection module: If they determine the customer can pay over time, they create an instalment plan and then collect the repayments from the customer on behalf of the merchant partners.
Both of these modules have been designed to work in harmony to provide a seamless customer journey that maximises conversion.
0% interest instalments means a consumer can buy something today and pay for it in the future. This is great for both consumers and businesses: consumers can spread the cost of high-value items into easy-to-manage instalments and, because of this, businesses can see a 30% sales uplift by offering instalments.
However, there are 10-14m consumers in the UK (20-25% of the adult population) that find it difficult to access credit from mainstream credit providers and are often rejected for 0% interest finance. This is because these consumers might, for example: not have previously applied for credit or have a mildly adverse credit history.
Cocoon allows businesses to serve these consumers.
Very simply, Cocoon charges a % of each transaction processed through their platform.
They are currently priced at 3.5% of each transaction processed but expect to increase this to ~6% once they are more established in the market.