Report: Cherry Considers Offering Bonds Tied to BNPL for Cosmetic Surgery
Cherry is reportedly gauging investors’ interest in a potential bond tied to buy now, pay later (BNPL) loans for dental or medical aesthetic treatments like cosmetic surgery.
The startup payment company is setting up meetings over the coming weeks, Bloomberg reported Monday (Sept. 16), citing unnamed sources.
This project is in its early stages and the firm could decide not to pursue it further, according to the report.
Cherry did not immediately reply to PYMNTS’ request for comment.
The company offers installment plans ranging from three to 60 months on bills ranging from $200 to $10,000, according to the report.
Cherry is the preferred partner for more than 20,000 practices, offering payment plans with high approvals and low cost, according to a press release issued in June.
At that time, AbbVie company Allergan Aesthetics announced the beginning of the national rollout of its Alle Payment Plans powered by Cherry, saying this offering will help Americans overcome the cost barrier to facial injectables like Botox and Juvéderm.
Cherry Chief Operating Officer Sean Schroeder said in the release: “With Cherry’s years of experience in patient financing, and Alle’s leadership in aesthetics rewards, this combined offering will support practices in helping make aesthetics treatments more accessible for all.”
The beauty and wellness industry has been embracing digital innovation in the form of solutions ranging from booking and payments innovations to “treat now, pay later” programs, according to the PYMNTS Intelligence and American Express collaboration, “The Digital Transformation of Beauty and Wellness Services.”
Retailers are experimenting with in-store offerings using augmented and virtual reality, while salons and spas are finding new revenue streams through software that allows them to expand services into digital product offerings and eCommerce, per the report.
In another recent development in this space, salon/spa software provider Mangomint said Sept. 6 that it raised $35 million in a Series B funding round.
Mangomint’s offerings include software to run beauty and wellness businesses, as well as a suite of marketing automation features designed to help these businesses drive profitability and deal with operating costs like rent and facility costs, product inventory, staff payroll and marketing.
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