Sydney-based Buy Now, Pay Later (BNPL) provider Zip.co announced that it has acquired Prague-based Central European BNPL provider Twisto Payments as it continues to grow across Europe.
With a presence in 13 countries, the acquisition of Twisto marks another milestone in Zip’s mission to provide fair, transparent, and flexible payment options for customers.
Zip co-founder and CEO Larry Diamond says, “The acquisition of Twisto demonstrates our commitment to global growth and follows our ‘Coalition of Founders’ model, where we back strong leaders with a shared vision and deep cultural alignment.”
What does Twisto offer?
Founded in 2013 by Michal Smida, Twisto Payments introduces a smart solution for payments and shopping. The company claims to be the first to bring BNPL services into the Czech Republic.
With Twisto Pay, people can defer the payment for their online shopping for 14 days, that too without registration and for free. It also enables its users to divide the payment into installments with immediate approval or shop and pay in three installments without any fees.
Registered users can pay with virtual or physical Twisto cards (run by Mastercard), pay with their smartphones through Apple Pay or Google Pay, settle their invoices by taking a picture with Twisto Snap or use Twisto Split to split a bill between friends. Additionally, they can also defer payments for their shopping for up to 45 days.
The company has served almost one million customers across 22,000 merchants and claims to be a leading BNPL platform in Central Europe. Some of Twisto’s flagship merchants include KFC, Pizza Hut, Secret Escapes, Gap, New Balance, Delivery Hero, Takeway, Yves Rocher, and Under Armour.
Speaking on the development, Smida says, “We’re excited to join the global Zip team to accelerate our strategic expansion plans across Europe. Combining our omnichannel product offering, proprietary technology for real time credit underwriting, access to Zip’s network of global merchants, backed by a strong capital base, we are at full strength to capture the market opportunities ahead.”
Aim of this acquisition
BNPL transactions in the EU grew by 292 per cent between 2018 and 2020, according to Kaleido Intelligence 2021, signalling a significant growth opportunity in an accelerating market. And with this acquisition, Twisto’s European Payment Institution License will enable Zip to offer payment services across all 27 member states of the European Union (EU), therefore increasing its growth across Europe.
Zip co-founder and CEO Diamond says, “Our increased presence in Europe enables us to tap new markets, win global merchants, and bolster our product offering. We are excited to officially add the EU to our global footprint and look forward to working with Michal and the team to continue to develop innovative BNPL solutions for the financial well-being of customers and merchants.”
Zip first invested in Twisto in December 2020. The acquisition will provide Twisto with access to the expertise, finance, and global network needed to accelerate growth and implement international best practices in the region.
“One of the fastest growing BNPL providers globally”
Founded in 2013 by Larry Diamond, Niamh Mc Enaney, Peter Gray, and Peter Gray, Zip is a fintech company that provides fair, flexible, and transparent payment options to individual consumers and SMBs.
Currently, Zip is operational in Australia, Canada, Czech Republic, India, Mexico, New Zealand, the Philippines, Poland, Saudi Arabia, South Africa, UAE, the UK and the USA. Earlier this year in March, the company launched its service in the UK and has made a wide array of partnerships with merchants across sectors including fashion, travel, sportswear, pets, home improvements, electricals, gaming, and large online retail marketplaces.
In addition, Zip is also committed to responsible lending and owns Pocketbook, a leading personal financial management tool. Currently, the company employs over 1,250 people worldwide.
