Australian fintech company Zip acquires European BNPL startup Twisto and UAE-based Spotii to expand into Europe and the Middle East

Zip Co (formerly known as ZipMoney), a Sydney, Australia-based financial technology company, announced today it has acquired acquire Twisto, a Prague-based payments startup and a provider of “Buy Now Pay Later” (“BNPL”) service. In addition, Zip also it has acquired the remaining shares of UAE-based BNPL startup Spotii.

The acquisition will enable Zip to expand its global footprints into Europe and the Middle East. In addition, the acquisition will also help Zip to tap into the rapidly accelerating global BNPL opportunity. As part of the acquisition agreement, Zip will purchase the remaining shares in Spotii9 that Zip does not already own for an amount of ~USD$16 million (~$21 million), implying an enterprise value of ~USD$20 million (~$26 million). The completion of the acquisition is expected to occur in the third quarter of 2011.

As we wrote earlier this year, BNPL is a new payment option that allows consumers to receive their purchase right away (Buy Now), either online or in-store and then pay (Pay Later) for their purchase in installments. Today, the BNPL accounts for only a small portion of overall card spending. However, with coronavirus pandemic-fueled e-commerce boom, this alternative model of financing may be poised to disrupt the $8 trillion US payment card industry.

Founded in 2013 , the Sydney, Australia-based Zip Co offers consumers credit options for online shopping. In September 2020, Zip acquired the US-based BNPL startup Quadpay to grow its American footprint. The company now has operations in Australia, the United States, the United Kingdom, New Zealand, South Africa, the Czech Republic, and the United Arab Emirates. It currently has around 38,500 retail partners and over 5,700,000 customers. As of March 2021, Zip Co’s market cap was $5.83 billion.

As demonstrated through the acquisition of QuadPay, where annual transactions have soared by over 200% post-acquisition, Zip is building its playbook in successfully identifying, completing, and integrating strategic acquisitions. Twisto and Spotii are now well-positioned to leverage the benefits of this competency and the synergies of a truly global payments organization. Twisto and Spotii are integrated into Zip’s global Single Merchant Interface (SMI), which provides merchants instant access to 11 countries across five continents.

Founded in 2013 by Michal Smida, Twisto is a cashflow management and payment app that enables customers to pay for their online purchases with just one click. Connected with a Mastercard and Apple Pay-compatible, the Twisto account enables customers to pay for their online purchases with just one click, deal with bills and invoices by taking a photo of them within the app, and pay just about anywhere else with the card, a special payment bracelet or ApplePay.

Commenting on the acquisition, Smida said, “We’re excited to join the global Zip team to take advantage of the significant European opportunity and to continue to develop innovative BNPL solutions. There is a massive opportunity in Europe as BNPL follows the global trend with a shift away from the unfriendly world of credit cards. With Twisto’s existing operations in Central Europe, we are uniquely positioned to tackle the $1.1 trillion European eCommerce market. Being part of Zip’s global platform will allow us to accelerate growth, expand to new markets, win global merchants operating in Europe, leverage global partnerships already in place and broaden our product offering. We share the same ethos – striving relentlessly to deliver the best omnichannel payments experience to both customers and merchants.”

“The acquisition of Twisto shows our commitment to global growth and follows our ‘Coalition of Founders’ model, where we back strong founders with a shared vision and deep cultural alignment in our quest for global payments coverage. We are very much looking forward to adding this strategic geography to our growing footprint and fulfilling global merchant demand. We have been impressed by the Twisto team, their deep customer focus, and product set and look forward to working closely with them to deliver on the opportunities we jointly have in front of us,” Zip Co-founder and Chief Executive Officer Larry Diamond said.

The acquisition of Spotii establishes Zip as a leading player in the Middle East, with Spotii operational in the UAE and KSA, and poised to expand further.