Affirm to buy Ratepay from Nexi to expand BNPL business in Europe

By Divya Shah

Why this matters: The deal highlights growing consolidation in BNPL, as payments companies combine regional expertise, credit technology and global networks to expand merchant services.

US-based payments company Affirm has agreed to buy Ratepay, the Germany-based buy now, pay later (BNPL) business owned by Nexi Group. Ratepay provides BNPL services to merchants across Germany, Austria and Switzerland. The financial terms of the deal have not been disclosed.

Alongside the purchase, Nexi and Affirm have signed a memorandum of understanding (MoU) to expand their existing partnership in the DACH region. The two companies plan to explore new business opportunities and combine their capabilities to strengthen their payment services for merchants and consumers.

Sabrina Flunkert, CEO of Ratepay, said, “This will allow us to combine our local market expertise in Germany, Austria and Switzerland with Affirm’s global reach, technology and expertise in credit and risk assessment. This lays the foundation for us to do even more for our partners, merchants and their customers in the future. The opportunity to expand our product portfolio into a complete BNPL offering, including instalment payments, opens up an exciting prospect for us.”

Once the transaction is completed, Nexi will provide transitional support to Ratepay and Affirm. This will include local operational assistance and technology expertise to help ensure a smooth transition.

The deal remains subject to customary regulatory approvals, with completion expected in the first half of 2027.

Bernardo Mingrone, CEO of Nexi Group, said that the sale was part of the company’s strategy to focus on its core business and optimise its portfolio. He added that Affirm’s ownership would provide Ratepay with better opportunities to strengthen its BNPL offering while continuing to support its customers and partners.

Nexi acquired Ratepay through its purchase of Nordic Payments Company Nets in 2021. Ratepay was previously owned by Germany’s Otto Group, which sold the business to Advent International and Bain Capital in 2017. The investors later combined Ratepay with Concardis, which was merged with Nets in 2018.