Zip fastens growth prospects with overseas acquisition

Zip Co (ASX: Z1P) is spreading its wings into new markets with an acquisition that sees it following in the footsteps of competitors in a global marketplace for buy-now pay-later (BNPL) services.

Similar to the way that Afterpay has pushed significantly into the US, and how Swedish buy-now pay-later solution Klarna has arrived in Australia via Commonwealth Bank (ASX: CBA), Zip is expanding overseas too.

The company has agreed to acquire 100 per cent of the shares in PartPay, providing the platform with exposure to New Zealand, United Kingdom, United States and South Africa.

PartPay is a New Zealand-based business that has already been localised in international markets and has an early-stage UK subsidiary that is poised for scale.

Established in January 2017, the company has more than 110,000 customers across 250,000 instalment plans and is integrated into more than 1,000 retailers.

Zip says PartPay is an ideal fit as an acquisition partner, considering they both conduct credit and ID checks during the service.

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Source: Zip fastens growth prospects with overseas acquisition