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September 2, 2020

Zip finalises takeover of buy now pay later firm QuadPay

Zip has completed the acquisition of ‘buy now pay later’ (BNPL) player QuadPay, and issued convertible notes and warrants to drive growth.

Free Report
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What does the future hold for BNPL market?

The global Buy Now Pay Later (BNPL) market is estimated at a massive $120 million in 2021 – representing just less than 3% of the global ecommerce market. Yet the user-base is massive, with leading provider, Klarna, alone reportedly having 87 million users in 2021. This market is only expected to grow, with established companies like Apple and Goldman Sachs moving into the BNPL sector in bids to capitalize on this trend. To help you make the most of this growing market, GlobalData’s Buy Now Pay Later in 2022 and Beyond report provides detailed insight into the BNPL sector. This report:
  • Discusses the disruptive potential of the BNPL sector on the payments industry
  • Identifies the leading companies that are driving sector growth and the benefits this new payments solution provides to both merchants and consumers
  • Analyzes the consumer’s risk of using BNPL loans and government attempts at introducing regulations to the sector
  • Uncovers the main risks that consumers expose themselves to when borrowing with BNPL
Download this free report to get to know where this developing market is headed, and how you can reshape your strategies.
by GlobalData
Enter your details here to receive your free Report.

Under the terms of the deal, Zip issued 118,776,189 fully-paid ordinary shares to QuadPay stockholders.

The company also granted 10,480,369 subscription options for new fully paid ordinary shares to QuadPay’s existing employees and option holders.

Zip issued a total of A$200m ($146m) in convertible notes and warrants to CVI Investments.

CVI is part of US-based Susquehanna International Group.

The acquisition and capital raise secured shareholder approval at an extraordinary general meeting held on 31 August 2020.

Zip co-founder and CEO Larry Diamond said: “We are thrilled to welcome QuadPay to the Zip Family. The QuadPay business has continued to deliver strong results, driven by the flight to online and a move away from the outdated and unfair credit card.

“We are already working closely with the QuadPay team and expect to drive significant synergies as we come together to capitalise on the global opportunity.”

QuadPay is a US-based customer-centric payments instalment platform.

It allows customers to pay in four interest-free instalments over six weeks for both their online and in-store purchases.

The acquisition of QuadPay brings $70m in monthly transaction volume and over two million customers to Zip.

Recently, QuadPay joined forces with Mastercard Vyze to offer instalment payments to shoppers.

Free Report
img

What does the future hold for BNPL market?

The global Buy Now Pay Later (BNPL) market is estimated at a massive $120 million in 2021 – representing just less than 3% of the global ecommerce market. Yet the user-base is massive, with leading provider, Klarna, alone reportedly having 87 million users in 2021. This market is only expected to grow, with established companies like Apple and Goldman Sachs moving into the BNPL sector in bids to capitalize on this trend. To help you make the most of this growing market, GlobalData’s Buy Now Pay Later in 2022 and Beyond report provides detailed insight into the BNPL sector. This report:
  • Discusses the disruptive potential of the BNPL sector on the payments industry
  • Identifies the leading companies that are driving sector growth and the benefits this new payments solution provides to both merchants and consumers
  • Analyzes the consumer’s risk of using BNPL loans and government attempts at introducing regulations to the sector
  • Uncovers the main risks that consumers expose themselves to when borrowing with BNPL
Download this free report to get to know where this developing market is headed, and how you can reshape your strategies.
by GlobalData
Enter your details here to receive your free Report.

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