Australian fintech ZeeFi is the newest addition to the BNPL bloc – the first to specialize solely in payments for education service providers.
Harnessing his years of experience in providing vocational and higher education loans and leveraging data gained from his outsourced management of thousands of installment payment plans for vocational education providers, the CEO of ZeeFi, Adam Olding, said the startup is uniquely positioned to break down the financial barriers that have prevented both education service providers and students from reaching their potential.
“We have a deep understanding of the nuances of the industry. payment compliance; information on student characteristics; to create unique credit score cards using our data analytics.
“We have high acceptance rates, but if for any reason a student is not accepted for Study Now Pay Later, we can automatically convert them to an interest-free payment plan that we manage for the study provider. education on an outsourced basis, so that enrollment can be guaranteed.
“It is a holistic solution to address the industry challenge to maximize enrollment and allows training providers to onboard more students than traditional BNPL products,” he said.
ZeeFi secured a $50 million credit facility for its education payment solutions suite from Australian alternative investment manager Alceon.
Entrepreneur Anthony Hynes, who sold his B2B payments company eNett for $577 million to US-based WEX, is chairman of ZeeFi.
Online, short and professional training courses are multiplying
Olding said the pandemic has demonstrated how online learning can scale rapidly, far beyond traditional education and training programs.
In fact, COVID-19 has accelerated the growth of online, short-term and professional courses offered by private providers, Registered Training Organizations (RTOs) and universities, as people seek to upgrade or upgrade. retrain in the changing labor market.
And with the global e-learning market set to grow from $130 billion to over $470 billion by 2026*, Olding said Australia’s education sector is simply not keeping up with the changes. quick on the funding front.
*The Australian Financial Review, 31 March 2021
Study now Pay later
“If you choose a course not funded by the government, you have limited options for funding your education. You can apply for a loan from a non-bank financial institution, usually at high interest rates,” Olding explained.
In 2019, there were three million fee-paying vocational students who were not eligible for government support, and the number continues to rise.
This is where ZeeFi steps in to fill the funding gap, enabling education providers of all sizes to help students pursue their goals.
As a computer science student, Natasha Powell, who chose to study with private provider Learning People, explains: “I could no longer work as a commercial pilot due to leg injuries sustained in a car accident. I decided to retrain for a career in cybersecurity, but worried about how I was going to pay for it. ZeeFi took the time to talk to me and offered me a convenient payment plan that I was comfortable with,” she said.
Unlock capital, increase registrations
Study Now, Pay Later (SNPL) was specifically designed to remove financial barriers that prevent educational institutions from enrolling students who wish to study. Once approved, ZeeFi onboards the student and handles the entire payment process.
Available for courses valued between $500 and $20,000, SNPL allows providers to be paid upfront, while students spread the cost of their course, interest-free, with regular repayments up to at 36 months. This means increased cash flow for providers while students receive stress-free funding with high acceptance rates.
Corey Bosecke, Team Leader at Learning People, said SNPL provided exactly what he was looking for: “a funding provider that understood the education sector well and offered both competitive and affordable funding options. great communication”.
The human connection
ZeeFi is more than a financing platform. Although approval can be done in minutes after a credit check, there is still a human element to the process. There is also a bespoke recovery process and a hardship team focused on empathetic resolutions.
Study Now, Pay Later – The BNPL product designed specifically for education providers and their students.
Payment Assistance – Personalized payment plans for students who are not eligible for SNPL
Professional loans – Flexible loans for students when government funding is not available
Cash Solutions – Purchasing Wallet and Cash Advance Options for Education Service Providers