Consumer payments platform Zilch has signed an agreement to acquire Lithuania-based AB Fjord Bank to kickstart its European expansion.
AB Fjord Bank has approximately $120 million in total assets and is authorised and regulated by the Bank of Lithuania and the European Central Bank.
The move provides Zilch, Europe’s fastest-growing unicorn, with a European banking licence as it eyes an international rollout after raising £135 million in debt and equity funding late last year.
Vilnius, Lithuania will now be its European headquarters for both operational and regulatory purposes.
Zilch, which last year revealed a doubling of revenues to over £110m as it narrowed losses, offers interest-free buy-now pay-later services funded through advertising. It has more than 5.5m customers, which it connects with thousands of retailers and brands – including the likes of Amazon, eBay, Tesco and Sports Direct.
To date, Zilch has processed over £5 billion of commerce.
Launched in 2021, Fjord Bank is a profitable and fully regulated challenger bank, focusing on online consumer lending and savings products.
The transaction is expected to complete in the second half of 2026, subject to regulatory approvals.
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“This is a defining moment for Zilch as we build a platform that will power our international expansion,” said Philip Belamant, co-founder and CEO of Zilch.
“Not only does the deal give us a strong, trusted and fully regulated banking presence in Europe, but it represents a coming together of shared visions. Both businesses have been built on a founding principle of putting customers first and building financial products with the highest standards of protection and transparency.
“By combining Fjord’s banking capabilities and regulatory footprint with Zilch’s market-leading data, AI capabilities and unique operating model, we can scale a new generation of consumer finance across Europe, just as we have done in the UK.”
Veiko Kandla, CEO of Fjord Bank, said: “We are incredibly proud of what the Fjord team has built over the past five years. Having established the business and successfully scaled it, the time is now right to become part of a bigger mission.
“Joining Zilch provides the perfect opportunity, enabling us to accelerate growth, expand our product set and reach millions more customers without compromising on our consumer-first values.”
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