Zip acquires BNPL players Twisto and Spotii to propel European and UAE expansion

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ustralian fintech Zip has agreed to acquire the remaining shares in European buy now pay later (BNPL) provider Twisto Payments and UAE-based BNPL firm Spotii.

The deals come as Zip looks to expand its BNPL operations to Europe and the Middle East following its recent expansion to the US and UK. According to the firm, these transactions are part its global expansion plans and enable it to meet demand from merchants for a single global BNPL solution across multiple markets.

Both Twisto and Spotii are integrated into Zip’s global Single Merchant Interface, which offers merchants instant access to 11 countries across five continents. Zip is purchasing the remaining 89.94% shares in Twisto for an amount of $140m (€89m), via its wholly owned subsidiary Zip UK. The deal follows Zip’s European strategy and further bolsters its presence in the UK, which was launched earlier this year.

Twisto holds a European Payment Institution licence that allows for the provision of payments services across all EU member states, subject to regulatory consents. It will act as gateway for Zip to access the EU, which is considered to be second-largest eCommerce market with $1.1trn annual volume.

Twisto founder and CEO Michal Smida noted: “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.”

The deal is expected to close in the fourth quarter of the year. Zip is also buying remaining shares in Spotii via Zip UK for about $21m. The deal is expected close in the third quarter of the year.

Spotii currently operates in the UAE and Saudi Arabia, with plans to expand into further regions.