ID Finance sells Russian POS finance business to Paylate
Barcelona-based ID Finance has sold off its Russian POS finance business AmmoPay as it plans to focus on Latin America.
Financial details were not disclosed
Financial details were not disclosed. POS lender Paylate is no dum-dum and has bought the business for some fintech ammunition and to build a single platform for installment loans that covers both offline retail and e-commerce.
“Paylate has historically worked with the largest online retailers and it is now time to introduce our products to offline. The infrastructure and experience gained by AmmoPay will provide Paylate with an excellent base for leadership in the non-bank POS lending segment in 2019,” comments Pavel Ivanov, executive director at Paylate.
According to ID Finance, POS finance is one of the fastest-growing areas of the fintech industry with Klarna, Affirm and GreenSky having an aggregate valuation of $8.7 billion. Almost all AmmoPay partners have already switched to a new unified technology platform.
With the acquisition, Paylate plans to increase its customer base to one million users by 2020 with its aggregate portfolio of financed installments amounting to more than $149 million.
This will largely be achieved via cross-selling (65% of AmmoPay retail partners are already selling via their own e-commerce sites), by combining the customer base, and using a number of brokerage technologies.
Paylate launched in 2013 and now has more than 700 e-commerce partners including Aeroflot and Yandex.Money.
AmmoPay has been operating in the POS finance market since 2015. In 2018, the volume of financed purchases in installments amounted to more than $7.5 million – more than three times the value of the previous year.
The company has more than 50 partners and 2,000 sales outlets. Its customer base has over 75,000 users.
