Zopa Bank has bought up the equipment Buy Now, Pay Later DivideBuy.
This purchase was the first for a financial institution after raising funding in the amount of 75 million pounds at the end of January.
DivideBuy provides sellers with the opportunity to offer their customers interest-free payment options when placing an order for the purchase of goods. Consumers can distribute the cost of their orders for a period of two to twelve months with more than 400 merchants.
As a structural element, Zopa DivideBuy will offer a loan for large purchases worth from 250 to 30 thousand pounds.
The financial institution plans to conduct credit and availability checks on each consumer. The Bank intends to report the presence of debt from customers to credit reference agencies. Zopa also plans to offer consumers its own tools with which they can pay off debts.
The preliminary financial forecast compiled by the bank’s specialists contains information that over the next few years, the revenue of a financial institution as a result of the introduction of a new solution will grow by at least 20%.
Zopa CEO Jaidev Janardana stated that this purchase will provide the bank with the opportunity to implement BNPL 2.0, the evolution of BNPL, which provides a simple, integrated product. He also noted that customers like this solution and allows them to solve some problems related to the availability of credit and the responsibility of participants in the relevant process.
The terms of the deal for the purchase of DivideBuy have not yet been announced.
The management of the financial institution intends to use additional financing in the amount of 75 million pounds, which the bank attracted at the end of January, to activate mergers and acquisitions. This direction of efforts will be the main one for Zopa until the end of the first quarter of 2023.