ASX-listed Zip is to fully acquire South African buy now pay later (BNPL) fintech Payflex as part of its global expansion plans.
Payflex is the first and largest BNPL player in South Africa and has grown from a base of just 70 merchants in 2019 to over 1,000 active merchants today. Over 135,000 customers have used Payflex - five times the customer base of 25,000 just a year ago.
With a presence in twelve markets across five continents, Zip plans to grow the South African business and expand into other African markets with sizable underbanked, digitally savvy populations.
Larry Diamond, Zip managing director and CEO says: “We started the year with a clear strategy for global expansion, and we have seen record growth, ending the year with $5,8b in total transaction volume, and more than 7.3M customers and 51k merchants around the world.”
The takeover of Payflex follows the May acquisitions of European BNPL provider Twisto and UAE-based startup Spotii, giving the Australian vendor an on-the-ground presence in Europe and the Middle East.