Zopa acquires DivideBuy in “BNPL 2.0” push
UK fintech unicorn Zopa has made its first acquisition, snapping up e-commerce credit solutions provider DivideBuy as it looks to deliver “BNPL 2.0”.
Zopa acquires DivideBuy
Financial details are undisclosed and the deal is set to be completed in the next few months. The move will enable Zopa users to spread the cost of larger purchases worth between £250 and £30,000.
Zopa says its buy now, pay later (BNPL) offering will run credit checks and affordability assessments, share data with credit agencies, enable the creation of credit profiles and help customers structure and pay off their debt.
It will also provide instant decisions and combine “fully integrated” consumer journeys with consumer protection and the safeguards of a regulated bank, Zopa says.
Zopa CEO Jaidev Janardana adds: “Combining DivideBuy’s POS financing solution with Zopa’s underwriting capabilities, regulatory permissions, and access to funding will enable digital-first journeys that bring new value to merchants.”
DivideBuy allows merchants to offer customers interest-free payment options at checkout. Its CEO Robert Flowers says the company’s tech will “enable Zopa to leverage its core lending capabilities” and “ensure we meet upcoming regulation head-on”.
Earlier this month, Zopa secured £75 million in a new funding round led by existing investors to drive its next phase of growth.
