Zopa acquires BNPL firm DivideBuy in embedded finance push
By Gloria Methri
British neobank Zopa is set to acquire Staffordshire-based buy now pay later (BNPL) company DivideBuy for an unspecified amount. The transaction marks Zopa’s first acquisition and will complete in the next few months.
By acquiring DivideBuy’s point-of-sale (POS) finance technology and lending platform, Zopa aims to bring a simple and fair solution for larger purchases that may otherwise take customers months or years to save for.
The BNPL 2.0 offering will combine technology and FinTech innovation to enable instant decisions. It will be fully integrated consumer journeys with protection, credit checks, and safeguards of a regulated bank.
Jaidev Janardana, CEO at Zopa, said, “This acquisition helps us bring to life BNPL 2.0, an evolution of BNPL which delivers the easy, integrated product that customers love. We are proud to be entering the POS space with DivideBuy, a market leader with a standout product and technology stack.”
With DivideBuy, merchants can offer their customers interest-free payment options at the checkout. Shoppers can spread the cost of their purchases over a 2-12-month period with over 400 merchants.
The application process is quick and easy, giving instant credit decisions without hidden fees or early repayment penalties. Some of the UK’s popular consumer brands like Emma, Simba, Swyft, and Nectar already use DivideBuy to offer customers more payment options.
Robert Flowers, CEO at DivideBuy said, “We were delighted to be approached by Zopa in its search for a POS finance provider to support its vision of building Britain’s best bank. Our LendTech solution will enable Zopa to leverage its core lending capabilities and build a market-leading POS finance solution.
“This deal with Zopa will bolster our current product suite to help us take POS finance further, faster. This approach will ensure we meet upcoming regulation head-on to deliver a BNPL 2.0 that is better for everyone.”
IBSi Daily News Analysis
December 01, 2023
UAE consumers turn to banks for advice on sustainable financeRead More
IBSi FinTech Journal
- Most trusted FinTech journal since 1991
- Digital monthly issue
- 60+ pages of research, analysis, interviews, opinions, and rankings
- Global coverage