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Why Aplazame's Business Model is so successful?

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Aplazame’s Company Overview


Aplazame is a leading fintech company based in Madrid, Spain, providing instant credit for online purchases. Launched in 2014, Aplazame aims to revolutionize the financial industry by offering a simple, secure, and convenient way for consumers to shop online and pay for their purchases over time. Aplazame's mission is to provide businesses with a tool to boost their sales by increasing conversion rates, average ticket size, and customer loyalty. The company's innovative technology uses machine learning algorithms to conduct real-time risk assessments, allowing for instant credit approval without the need for paperwork. Aplazame's business model is centered around partnering with online retailers to offer their customers the option of instant credit at the point of purchase. Retailers integrate Aplazame's technology into their checkout process, allowing customers to select their preferred payment plan. Aplazame then pays the retailer upfront for the purchase, taking on the risk of customer repayment. This model not only provides a value-added service for retailers but also helps them to increase sales and customer loyalty. In terms of its revenue model, Aplazame generates income from the interest and fees charged to customers who choose to finance their purchases. The interest rate varies depending on the customer's risk profile and the chosen repayment period. The company also charges a small commission to its partner retailers for each transaction made using their service. This dual revenue stream allows Aplazame to maintain a steady cash flow while continuing to grow and innovate in the fintech space.

https://aplazame.com/

Country: Spain

Foundations date: 2014

Type: Private

Sector: Financials

Categories: Financial Services


Aplazame’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: provides access, design/aesthetics

Functional: simplifies, integrates, connects, reduces effort, avoids hassles


Aplazame’s Related Competitors



Aplazame’s Business Operations


Brokerage:

A brokerage firm's primary responsibility is to serve as a middleman, connecting buyers and sellers to complete transactions. Accordingly, brokerage firms are compensated through commission once a transaction is completed. For example, when a stock trade order is executed, a transaction fee is paid by an investor to repay the brokerage firm for its efforts in completing the transaction.

Disruptive banking:

The banking industry's disruptors are changing the norms that have been in place for decades. These new regulations, however, will only be effective until the next round of disruption occurs. Banks and credit unions must thus be nimble and responsive. We need audacious tactics. 'Disruptive Innovation' is a term that refers to the process whereby a product or service establishes a foothold at the bottom of a market and then persistently climbs up the value chain, ultimately replacing existing rivals.

eCommerce:

Electronic commerce, or e-commerce (alternatively spelled eCommerce), is a business model, or a subset of a larger business model, that allows a company or person to do business via an electronic network, usually the internet. As a result, customers gain from increased accessibility and convenience, while the business benefits from integrating sales and distribution with other internal operations. Electronic commerce is prevalent throughout all four main market segments: business to business, business to consumer, consumer to consumer, and consumer to business. Ecommerce may be used to sell almost any goods or service, from books and music to financial services and airline tickets.

Innovative retail banking model:

The design has no resemblance to a bank but more to a coffee shop. There is free wifi and a large number of iPads accessible for internet use. Automated teller machines (ATMs) are located around the perimeter of the coffee shop, allowing customers to conduct financial transactions. The workforce consists of a mix of coffee shop patrons and banking personnel who circulate and make themselves accessible. If you need services not available through an ATM, fully trained bank personnel can offer all services typically available at a conventional bank branch.

Micropayment:

Micropayments are financial transactions involving a tiny amount of money that is frequently conducted online. While micropayments were initially intended to apply minimal amounts of money, practical systems allowing less than one dollar transactions have met with little success. One impediment to the development of micropayment systems has been the need to keep transaction costs low, which is impracticable when transferring such tiny amounts, even if the transaction charge is just a few cents.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.

P2P lending:

P2P lending removes the intermediary layer from borrowing and lending, making financing a feasible financial choice for individuals. Peer-to-peer lending (P2P) is a kind of debt financing that allows people to borrow and lend money without using a traditional financial institution. Peer-to-peer lending eliminates the intermediary but requires more time, effort, and risk than conventional brick-and-mortar lending.

Transaction facilitator:

The business acts as an acquirer, processing payments on behalf of online merchants, auction sites, and other commercial users for a fee. This encompasses all elements of purchasing, selling, and exchanging currencies at current or predetermined exchange rates. By far the biggest market in the world in terms of trade volume. The largest multinational banks are the leading players in this industry. Around the globe, financial hubs serve as anchors for trade between a diverse range of various kinds of buyers and sellers 24 hours a day, save on weekends.

Two-sided market:

Two-sided marketplaces, also called two-sided networks, are commercial platforms featuring two different user groups that mutually profit from the web. A multi-sided platform is an organization that generates value mainly via the facilitation of direct contacts between two (or more) distinct kinds of connected consumers (MSP). A two-sided market enables interactions between many interdependent consumer groups. The platform's value grows as more groups or individual members of each group use it. For example, eBay is a marketplace that links buyers and sellers. Google connects advertising and searchers. Social media platforms such as Twitter and Facebook are also bidirectional, linking consumers and marketers.

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