Zip begins “global expansion story” with strategic investments
Zip will move into the New Zealand, UK, US and South African markets through the purchase of global instalment technology platform PartPay for $NZ50.8 million.
According to a statement on the ASX, the platform is scalable in global markets.
The business has also agreed to buy an 8.9 per cent direct equity stake in the New York-based buy-now-pay-later provider QuadPay for $US11.4 million.
“This transaction marks the beginning of Zip’s global expansion story,” Zip CEO Larry Diamond said.
“While we see significant upside in the core Australian business, we feel the timing is opportune to begin investing abroad as we seek to build a global payments business,” he said.
The BNPL sector has attracted recent attention by the big players.
This week Citi announced a BNPL offering through a tie-up with retail platform Kogan.
The Commonwealth Bank also announced that it would move into the sector through a stake in Klarna.
“I often say in my presentations that I can’t think of an example of a method of payment or service that has gone from zero to massive adoption in such a short period of time,” RFi Group head of consulting Alex Boorman has said.
“Both merchants and consumers love the concept. BNPL has delivered on a successful value proposition”.