Zip Co Limited has acquired US-based buy now pay later provider, QuadPay in a deal valued at circa $403 million.
The combined group will operate across Australia, New Zealand, the US, the UK and South America with total transaction volume of $3 billion, annual revenue of $250 million, 3.5 million customers and over 26,000 merchants.
QuadPay was among the first BNPL providers to leverage virtual card technology in partnership with Stripe, which facilitates instalments anywhere with the Visa acceptance network online and offline and enables in-store rollout with no point-of-sale integration.
Quadpay operates on the same core technology and source code as Zip’s UK and New Zealand businesses, minimising integration costs and enabling the delivery of global merchants deals and new product features.
Zip CEO and co-founder, Larry Diamond said the company is excited to have the QuadPay team join the Zip family.
“As a strategic investor in the business, we have spent considerable time with founders, Adam and Brad, and shared a united vision of disrupting the outdated credit card with a digital and fairer alternative. The US is a critical part of our global strategy and vital as merchants increasingly look for a global payments solution.”
Quadpay co-founders and joint-CEOs, Adam Ezra and Brad Lindenberg added: “This is a great opportunity for QuadPay and our team to join Zip in establishing a truly global BNPL platform and scaling even faster. Customers are changing the way they pay, leaving behind credit cards and gravitating towards interest free instalments.”
Ezra and Lindenberg will join the Zip global leadership team, responsible for scaling the US business.