FinTech firm Pagaya unlocks $1bn for point-of-sale lending through POSH securitisation

May 26, 2025

Pagaya Technologies, a global FinTech company specialising in AI-powered financial solutions, has launched a new securitisation programme aimed at accelerating growth in the point-of-sale (POS) lending space.

The company has secured over $1bn in additional funding capacity through the creation of Pagaya Point of Sale Holdings Trust (POSH), a revolving asset-backed securitisation vehicle. The initial transaction, POSH 2025-1, is a $300m AAA-rated deal expected to close next week, with over 20 investors participating—including a mix of new and returning backers.

Pagaya uses machine learning and a vast data network to provide consumer credit and residential real estate solutions. Its platform integrates via API into partners’ origination systems, enabling seamless customer experiences and broader access to credit products.

The new funding from POSH will allow Pagaya to expand its POS lending capacity by enabling reinvestment as loans are repaid, thus improving capital efficiency. The POS offering is designed for shorter-term loans, typically around six months, targeting borrowers with credit scores above 600. This setup supports higher approval rates without increasing credit risk, making it an attractive option for lenders and merchants alike.

Pagaya co-founder and president Sanjiv Das said, “The launch of POSH unlocks a new chapter of strong growth for us in the point-of-sale space.

“It enables Pagaya to support our existing POS lending partners at scale by powering more customer approvals, which in turn drives greater merchant satisfaction and activation. These results are delivered seamlessly through our API integration into our partners’ origination systems, making it easy to unlock value for both lenders and merchants. This is a powerful example of combining differentiated technology and structured finance to solve real market needs in one of the most exciting and fastest-growing segments of consumer credit.”

Pagaya co-founder and CEO Gal Krubiner added, “We’re proud to launch POSH and bring Pagaya’s category-leading securitization expertise to the fast-growing point-of-sale market, which we expect will represent a meaningful part of our future business.

“Through all market cycles, we continue to scale and diversify our lending products and long-standing investment offerings, while innovating with new structures to fuel growth in more nascent markets, such as POS. As the number one personal loan ABS issuer in the U.S., Pagaya aims to also be the leading issuer of POS ABS, reinforcing our position as a leader in structured finance.”