M&A activities increasing in the growing BNPL market

M&A activities increasing in the growing BNPL market

M&A activities increasing in the growing BNPL market

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There has been a rising number of M&A’s taking place in the BNPL market. Strategic expansion via acquisitions has enabled companies in the BNPL market to expand to new geographies or target a larger customer base. Market players are expanding globally to deepen retailer partnerships to further improve reach and have been focusing on SMB acceptance in newer markets. This is strengthening their position in the market. Some of the key acquisitions in the BNPL market globally are mentioned below.

In January 2021, Affirm, a US based fintech firm, completed the acquisition of PayBright, Canada’s buy-now-pay-later provider, for about US$264 million (C$340 million). This acquisition is expected to help Affirm extend its reach, scale and provides access to various merchants and consumers across the US and Canada.

In December 2020, Alliance Data Systems, a data-driven marketing, loyalty and payment solutions provider, acquired Bread, a BNPL player, to extend its digital capabilities and payment methods for its brand partners and their customers. Earlier, in October 2020, Klarna, a shopping and payment provider purchased Woila, a Swedish post-purchase experience startup, to develop products which can further enhance customer shopping experience.

Afterpay, an Australian fintech company, acquired Spain-based Pagantis, a traditional credit and buy now pay later services provider across Spain, Italy and France, for US$59M (€50M) to extend its operations in Europe, August 2020. Also, a wholly owned subsidiary of the Group acquired EmpatKali, a Singapore based and Indonesia-focused buy-now-pay-later service, to further expand in Asia and capitalize on growing online shopping in the region due to COVID-19.

In June 2020, Zip Co acquired QuadPay, a BNPL platform provider in the US, for US$296M (AUD 403M) to expand its footprint in the US. Earlier, in February 2020, Klarna acquired Moneymour, an Italian BNPL startup, to leverage Moneymour’s knowledge and expertise to further enhance its underwriting capabilities as well as customer shopping experience. Moneymour credit scoring engine which is backed by PSD2 enables quicker and automated credit decision only with a few clicks. Also, it launched a product development hub in Milan. Going forward, the BNPL market is expected to witness further consolidation as competition in the market intensifies.

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