Pagaya expands partnership with Upgrade into buy now, pay later loans

Pagaya Technologies Ltd. (NASDAQ: PGY) announced an expansion of its partnership with Upgrade Inc. to include the fintech's buy now, pay later product called Flex Pay, according to a company statement.

The collaboration extends beyond the companies' existing personal loan partnership into point-of-sale financing. Pagaya will provide AI-driven credit decisioning technology for Upgrade's Flex Pay monthly payment options.

The initial expansion targets the travel merchant segment, where Flex Pay operates as a payment method for travel brands. Pagaya's real-time underwriting technology will enable Upgrade to extend financing options to more customers across its travel partner network.

"By leveraging Pagaya's AI-powered decisioning within our Flex Pay product, we are enabling more people to access the payment solutions they need," said Tom Botts, President of Flex Pay at Upgrade.

Sanjiv Das, President of Pagaya, said the expansion represents a deepening of the companies' relationship beyond personal loans and supports the company's strategy to extend point-of-sale business.

Upgrade, founded in 2017, has provided over $47 billion in credit to more than 7.8 million customers. The San Francisco-based company offers buy now, pay later, personal loans, credit cards, mobile banking, home improvement financing, and auto financing products.

Pagaya uses machine learning and AI technology to provide consumer credit products for partners and investors through its API and capital solutions platform.

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