IPawn

Last updated
iPawn
Ipawn logo.png
Type of business Pawnbroker
Founded2011
Headquarters Tyler, Texas, United States
Area servedUnited States
Services Secured loans, luxury goods reseller
URL www.ipawn.com

iPawn is a financial services company serving as an online lender and reseller for luxury goods. The company holds an online pawn shop license with headquarters in Tyler, Texas. iPawn raised over $4 million in investment [1] and has been cited as one of the leading companies in transitioning the pawn industry to the internet. [2] [ failed verification ]

Contents

Services

iPawn provides two main services:

  1. Non-recourse loans, otherwise known as pawn loans or asset-based loans, against valuables.
  2. Buying and selling pre-owned valuables.

Both lending and retail services are rendered to consumers and small businesses. iPawn provides its services against luxury items such as jewelry, diamonds, gemstones, precious metals and high-end watches.

History

iPawn was established with the purpose of utilizing the latest technologies and internet for the veteran pawnbroking industry and to serve as a high-end pawn broker, [3] delivering a simple, private way [4] to get loans or sell high end goods through the internet. The idea came after learning about the high interest rates charged by pawn shops. The company launched its services to the public in July 2012. In March 2013 iPawn closed $4 million in its second round of financing from a group of angel investors led by Dr. Rafi Gridron. [1] On May 12, 2014 iPawn announced the launch of a new brand called Worthy dealing only in after-market sales.

Brick & Mortar Pawn Shop Vs. Online Pawn Shop

While services provided by a brick and mortar pawn shop are similar to those provided by the online ones, there are few main differences: most notably, the means by which services are rendered. In a brick and mortar pawn shop, the process of receiving a loan or selling a valuable is done in person [5] while in an online pawn shop the process is conducted through the internet [4] and a courier of choice. The low inventory overhead results in the ability to provide higher value and lower interest rates. Another notable difference is the appraisal process of the submitted valuables: in a brick and mortar pawn shop, the appraisal is done in the local shop itself while in an online pawn shop, all items are shipped to a central facility where the appraisal is made.[ citation needed ]

Licenses and Accreditation

iPawn is a licensed pawn shop certified by the Texas Office of Consumer Credit Commissioner [6] (OCCC). Additionally, iPawn holds a precious dealer certificate, [7] also granted by the Texas OCCC. iPawn is accredited by the Better Business Bureau.

Partnerships

iPawn has partnered in 2012 with FedEx and ParcelPro to provide insured shipping services. iPawn also partnered with Delta Lloyd in the same year to provide insurance to its facilities. [8]

In the Media

In August 2013, MSN Money Watch discussed how iPawn caters to affluent individuals and families that don't need money immediately but want a more sizable loan to help their cash flow. [9] In an article published in July 2013, Reuters discusses the benefits of the purely online transactions carried out by iPawn, focusing on the desired discretion amidst the negative stigma of pawn shops. [10]

In May 2013,LearnVest brought into focus the story of a dentist who chose to use iPawn to sell family jewelry instead of a traditional bank loan. [11]

Yahoo New Zealand published an article in March 2013 shedding light on the new world of online pawn shops and what to expect when utilizing their services. [5]

South Coast Today Describes in an article published January 2013 how small business are turning to pawn shops for short-term loans, a better suited alternative to traditional bank loans. [12]

Early in 2013, TIME Business and Finance discussed the reinvention of the pawn industry and its transition to the internet. [2]

KETK NBC Sits down with iPawn COO in December 2012 to talk about bringing the pawn shop online. [13]

In December 2012, NuWire Investor provided a detailed layout of the upscale online pawn industry and its move away from the originally bad stigma attached to pawn shops. [14]

Later in December 2012, The New York Post wrote about the appeal of high-end online pawn shops from small business owners to wealthy celebrities. [3]

See also

Related Research Articles

E-commerce is the activity of electronically buying or selling of products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. E-commerce is in turn driven by the technological advances of the semiconductor industry, and is the largest sector of the electronics industry.

<span class="mw-page-title-main">Pawnbroker</span> Individual or business that offers loans, using personal property as collateral

A pawnbroker is an individual or business that offers secured loans to people, with items of personal property used as collateral. The items having been pawned to the broker are themselves called pledges or pawns, or simply the collateral. While many items can be pawned, pawnshops typically accept jewelry, musical instruments, home audio equipment, computers, video game systems, coins, gold, silver, televisions, cameras, power tools, firearms, and other relatively valuable items as collateral.

<span class="mw-page-title-main">Amazon (company)</span> American multinational technology company

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GE Capital is the financial services division of General Electric.

A reseller is a company or individual (merchant) that purchases goods or services with the intention of selling them rather than consuming or using them. This is usually done for profit. One example can be found in the industry of telecommunications, where companies buy excess amounts of transmission capacity or call time from other carriers and resell it to smaller carriers.

<span class="mw-page-title-main">Online shopping</span> Form of electronic commerce

Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of the retailer directly or by searching among alternative vendors using a shopping search engine, which displays the same product's availability and pricing at different e-retailers. As of 2020, customers can shop online using a range of different computers and devices, including desktop computers, laptops, tablet computers and smartphones.

<span class="mw-page-title-main">Arcandor</span> Holding company

Arcandor AG was a holding company located in Essen, Germany, that oversaw a number of companies operating in the businesses of mail order and internet shopping, department stores and tourism services. It was formed in 1999 by the merger of Karstadt Warenhaus AG, founded in 1920, with Quelle AG, founded in 1927. In 2005, the corporation had about 68,000 employees and annual sales of €15.5 billion. Its stocks were traded on the Mid Cap DAX until September 2009. The company's largest store was Kaufhaus des Westens (KaDeWe) in Berlin, and the largest store operated by Karstadt was in Frankfurt.

<span class="mw-page-title-main">Brick and mortar</span> Class of organisations or businesses

Brick and mortar refers to a physical presence of an organization or business in a building or other structure. The term brick-and-mortar business is often used to refer to a company that possesses or leases retail shops, factory production facilities, or warehouses for its operations. More specifically, in the jargon of e-commerce businesses in the 2000s, brick-and-mortar businesses are companies that have a physical presence and offer face-to-face customer experiences.

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EZCORP, Inc. is an American pawn shop operator based in Austin, Texas which provides services across the United States and Latin America. It is a publicly traded company listed on the NASDAQ stock exchange and is the second largest pawn shop operator in the U.S. after Cash America International.

<span class="mw-page-title-main">PFSweb</span>

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An online grocer is either a brick-and-mortar supermarket or grocery store that allows online ordering, or a standalone e-commerce service that includes grocery items. There is usually a delivery charge for this service. Brick-and-mortar supermarkets that have built internet channels to better service their clients are known as online grocers. Online grocery delivery services are available throughout Europe, Asia and North America, mostly in urban centers. The online ordering is done through e-commerce websites or mobile apps.

<i>Pawn Stars</i> American reality television series

Pawn Stars is an American reality television series, shown on History, and produced by Leftfield Pictures. The series is filmed in Las Vegas, Nevada, where it chronicles the daily activities at the World Famous Gold & Silver Pawn Shop, a 24-hour family business opened in 1989 and originally operated by patriarch Richard "Old Man" Harrison, his son Rick Harrison, Rick's son Corey "Big Hoss" Harrison, and Corey's childhood friend, Austin "Chumlee" Russell. The series, which became the network's highest rated show and the No. 2 reality show behind Jersey Shore, debuted on July 26, 2009.

<i>Hardcore Pawn</i> American TV reality show

Hardcore Pawn is an American reality television series produced by RDF USA and Richard Dominick Productions for truTV about the day-to-day operations of American Jewelry and Loan, a family-owned and -operated pawn shop and broker in Detroit, Michigan's 8 Mile Road corridor.

<span class="mw-page-title-main">Direct Line Group</span> British insurance company

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<span class="mw-page-title-main">Omnichannel retail strategy</span> Business model

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Unbolted is a UK based online personal asset-based peer-to-peer lending platform, where individuals can borrow from other individuals by using high value personal assets such as luxury watches, cars, fine arts, antiques, jewellery and commodities such as gold. The company started trading in November 2014 and has its offices in London.

The Texas Office of Consumer Credit Commissioner (“OCCC”) is a Texas state agency that regulates non-depository lenders in the state of Texas, which includes, among others, mortgage loan originators, vehicle sales finance companies, debt settlement providers, pawnshops and credit access businesses.

References

  1. 1 2 Staff (March 14, 2013). "iPawn Raises $4M". PE Hub. Reuters. Retrieved 9 December 2013.
  2. 1 2 Sarah Max (Jan 17, 2013). "Reinventing the Pawn Shop". Time Business and Money. Time. Retrieved 9 December 2013.
  3. 1 2 Paul Tharp (26 December 2012). "New pawn shops court high-end borrowers". nypost.com. New York Post. Retrieved 9 December 2013.
  4. 1 2 Laurie Kulikowski (2012-12-18). "Online Pawn: a Booming Business Luring Upscale Customers". Thestreet.com. The Street. Retrieved 9 December 2013.
  5. 1 2 Geoff Williams (14 March 2013). "Pawn Shops Go Mainstream". U.S. News & World Report. U.S. News. Retrieved 9 December 2013.
  6. "OCCC License". Archived from the original on 13 December 2013. Retrieved 9 December 2013.
  7. "Active Precious Metal Dealers" . Retrieved 9 December 2013.
  8. Ross, Allison. "High-End Pawnshops Cater To Asset-Rich". Bankrate. Retrieved 30 December 2019.
  9. Geoff Williams (14 March 2013). "Pawn shops go mainstream". U.S. News & World Report. U.S. News. Archived from the original on 13 December 2013. Retrieved 9 December 2013.
  10. DEBORAH L. COHEN (2 July 2013). "High-end pawn shops solve small business cash crunch". Reuters.com. Reuters. Retrieved 9 December 2013.
  11. Stephanie Taylor Christensen (May 21, 2013). "Pawn Shops Go Upscale: Is This a Good Way to Score Extra Cash?". Learnvest.com. Learnvest. Retrieved 9 December 2013.
  12. Jennifer Lade (January 18, 2013). "Online pawn shops offer financing option for small business". Southcoast Business Bulletin. southcoasttoday.com. Retrieved 9 December 2013.
  13. Angela Berry (December 13, 2012). "ETL: The revolution of online loans". kektnbc.com. NBC. Retrieved 9 December 2013.
  14. Laurie Kulikowski (December 21, 2012). "Online Pawning Goes Uptown". Nuwireinvestor.com. NuWire. Retrieved 9 December 2013.