Zopa is set to acquire DivideBuy’s point-of-sale finance technology and lending platform. 

The transaction, which is expected to complete in the next few months, marks the London FinTech’s first acquisition.

A deal for DivideBuy, based in Newcastle-under-Lyme, would be expected to increase Zopa’s revenue by at least 20% in the coming years.

Zopa says the move is part of its vision for responsible Buy Now Pay Later consumer lending, enabling instant decisions and integrated consumer journeys with consumer protection, credit checks and the safeguards of a regulated bank.

“This acquisition helps us bring to life BNPL 2.0, an evolution of BNPL which we believe delivers the easy, integrated product which customers love whilst also addressing some of the issues around affordability and responsible lending which have plagued the sector,” said Jaidev Janardana, CEO at Zopa.

“We are proud to be entering the POS space with DivideBuy, a market-leader with a standout product and technology stack, and a culture that is closely aligned to our values of fairness and customer centricity.

“Combining DivideBuy’s POS financing solution with Zopa’s best-in-class underwriting capabilities, regulatory permissions, and access to funding will enable digital-first journeys that bring new value to merchants and consistently delight customers. We are thrilled to welcome DivideBuy into the Zopa family.”

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With DivideBuy, merchants can offer their customers interest free payment options at 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 an instant credit decision without hidden fees or early repayment penalties.

Some of the UK’s most iconic consumer brands like Emma, Simba, Swyft, and Nectar already use DivideBuy to offer customers more payment options and drive better outcomes for both them and their customers. 

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. 

“DivideBuy’s product, technology and culture align perfectly with Zopa’s values and brand strength, making this an ideal fit for the future of lending. Our LendTech solution will enable Zopa to leverage its core lending capabilities and build a market-leading POS finance solution. 

“DivideBuy’s mission has always been to help make life more affordable. This deal with Zopa will bolster our current product suite to help us take POS finance further, faster – with ethical lending at the core. This approach will ensure we meet upcoming regulation head-on to deliver a BNPL 2.0 that’s better for everyone. 

“We’re particularly excited for our people. Zopa and DivideBuy share a strong people-focused culture, and we’re committed to empowering our collective teams with new upskilling and career opportunities. We look forward to the next chapter of growth as part of the Zopa Group.”

Since launching in 2020, Zopa bank has attracted £3 billion in deposits, more than £2bn of loans on balance sheet, and issued close to 400,000 credit cards.

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