Australian Fintech Startup Zip Acquires SA PayFlex To Expand Innovative Payment Solutions Across Africa
Sept. 3, 2021, 2:41 p.m.
As part of Zip’s plans to expand into Africa, the Australian BNPL (buy now pay later) fintech startup has acquired South Africa-based fintech startup PayFlex at an undisclosed figure.
Zip is a leading player in the digital retail finance and payments industry. The company offers point-of-sale credit and digital payment services to the retail, home, health, automotive, and travel industries.
With a presence in 12 markets across five continents, Zip plans to grow the South African business and expand into other African markets with sizeable underbanked, digitally savvy populations that will benefit from innovative payment solutions. With that in mind, it announced its intention to fully acquire PayFlex.
The company currently serves 51,000 merchants and 7.3 million customers across 12 markets. This fiscal year, June 2021, a period when most of its acquisitions have occurred, Zip hit $5.8 billion in total transaction volume, up 176% year-over-year (YoY).
Zip’s entry to Africa is relevant for some reasons. For one, the continent is a largely untapped market that has enormous growth potential. There is also the issue of lack of infrastructure and BNPL innovation that only new entrants like Zip can execute because it has a large monetary chest.
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“The growth of Payflex over the past few years has demonstrated the demand for buy now, pay later in South Africa. Zip’s acquisition will boost the speed and scale of Payflex’s expansion and allow merchants and shoppers to benefit from Zip’s world-class products, platform, and global reach. It is also a significant vote of confidence in the all-South African Payflex team, which will remain unchanged and focused on growing the business,” said Paul Behrmann, founder and chief executive officer (CEO) of Payflex.
Larry Diamond, Zip managing director, and CEO said the last year had been “truly transformational” for Zip as it continued to deliver, despite the most exceptional global economic conditions.
PayFlex is a BNPL service provider that allows consumers to shop now and pay later, interest-free. It was founded in 2017 and has over 1,000 merchants and 135,000 customers. Before fully acquiring PayFlex, Zip had a 25% stake when it invested in the South African BNPL service six months ago.
tag: south africa, Startup, Innovation, Fintech,
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