Australian Stock Exchange (ASX)-listed Buy Now, Pay Later Fintech Zip is reportedly expanding its business operations into European markets and the Middle East. Zip says it’s acquiring European BNPL Fintech Twisto and UAE’s Spotii as well.
Zip reportedly took part in a €16 million investment round in Czech BNPL firm Twisto in January 2021. Zip will now be acquiring the remaining shares that it doesn’t own for €89 million.
Linked to Mastercard, Twisto makes use of an in-house developed scoring engine to allow approved clients to pay for their online purchases with a simple click, take care of bills and invoices by taking a quick picture of them within the app and then pay anywhere else via the card or an NFC payment bracelet.
Established in 2013, the company has managed to attract 1.6 million clients in the Czech Republic and Poland. Zip has also been given a European Payment Institution license, allowing it to support payments services across all European Union member countries.
Michall Smida, Founder and CEO at Twisto, stated:
“There is a massive opportunity in Europe as BNPL follows the global trend with a shift away from the unfriendly world of credit cards. With Twisto’s existing operations in Central Europe, we are uniquely positioned to tackle the $1.1 trillion European e-commerce market.”
With European markets now being served, Zip is also looking to enter the Middle East, acquiring the outstanding shares in BNPL Fintech Spotii for $16 million, which has come after an earlier investment made in December 2020.
Established last year and currently offering services in the UAE and Saudi Arabia, Spotii has demonstrated good early traction with 650 merchants integrated into the platform. They include popular Middle Eastern brands like Jashanmal and Danube Home. Aggregate transaction volume has increased at an average of about 90%+ month-on-month since launch.
Larry Diamond, Co-founder and CEO at Zip, remarked:
“We have been working with Spotii since our initial investment in December 2020 to broaden our understanding of the BNPL opportunity in the region and have a number of exciting global merchants we are looking forward to activating in the coming months. We also believe there is a large untapped opportunity to bring BNPL to emerging markets where cash on delivery remains a significant merchant challenge, and where the digitization of retail accelerates.”