US-based buy now, pay later (BNPL) fintech firm Affirm has agreed to acquire Canadian peer PayBright for nearly C$340m ($264m) in cash and equity.
The combination of the two BNPL players creates a payment solutions platform with expanded merchant network in the US and Canada.
The deal is expected to complete in the first quarter of 2021. Additional deal terms were not made public.
PayBright president and CEO Wayne Pommen said: “Affirm’s network, focus on trust and transparency, and industry-leading technology makes it the ideal partner for PayBright.
“As part of a larger, multinational organisation, we can help even more merchants attract new customers and provide a greater number of consumers with more control and flexibility in their purchasing decisions.”
Founded in 2012, Affirm provides financial support to consumers without charging late fees for missed payments.
Its users can choose to pay bi-weekly and monthly on a per-transaction basis.
The company also generates value for merchants as its business model leverages data to assess risk.
Meanwhile, PayBright enables users to choose from instalment options ranging from four bi-weekly interest-free payments for smaller purchases and up to 60 months for bigger purchases.
The firm has tie-ups with more than 7,000 domestic and international retailers.
Affirm CEO and founder Max Levchin said: “We are excited to combine with PayBright, creating the opportunity to expand our footprint across North America and scale our platform.
“PayBright shares Affirm’s goal of improving the payments experience for consumers and merchants alike, and PayBright’s base of merchants complements our own customer network.
“We look forward to welcoming their talented team to the Affirm family.”
Recently, the Canadian electronic payment processing company Nuvei inked a purchase agreement to acquire all the assets of integrated payment solutions provider Base Commerce.