Zip Co will fully acquire European buy now pay later (BNPL) provider, Twisto Payments and UAE-based BNPL leader, Spotii as part of its global expansion plans and the accelerating global BNPL opportunity.

Following its successful expansion to the US and UK, the company is now extending its BNPL operations to Europe and the Middle East. The acquisition deals, which are expected to be completed by the end of the year, will enable Zip to respond to increased demand from merchants for a single global BNPL solution across multiple markets.

According to Statista data, Europe is the world’s second largest ecommerce market, valued at $1.1 trillion and Twisto’s license can be passported to all 27 member states of the EU.

Twisto’s product offering aligns with Zip’s digital wallet strategy with the issue of virtual cards, short and long-term instalments, an account-based revolving credit line, integrations into Apple Pay and Google Pay, as well as the ability to pay bills via the Twisto app.

Over one million customers have transacted on the Twisto platform with annual revenue of $12 million and 14,000 merchants including Delivery Hero, Pizza Hut, Gap, New Balance and Under Armour.

Twisto founder and CEO, Michael Smida said the company is excited to join the global Zip team to take advantage of the significant European opportunity and continue to develop innovative BNPL solutions.

“There is a massive opportunity in Europe as BNPL follows the global trend with a shift away from the world of credit cards… 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 and broaden our product offering,” he said.

Zip co-founder and CEO, Larry Diamond said the acquisition of Twisto shows Zip’s commitment to global growth and follows its ‘Coalition of Founders’ model where the company backs strong founders with a shared vision and deep culture alignment.

“We are looking forward to adding this strategic geography to our growing footprint and fulfilling global merchants demand,” he said.

The Middle East is one of the fastest growing ecommerce regions globally with online spend increasing at 25% annually. Founded in 2020, Spotii has 650 merchants integrated into the platform with total transaction volume growing at an average of 90% month-on-month since inception.

Spotii co-founder and CEO said there has been a significant uptake of the platform by merchants and customers, highlighting the appetite and need for BNPL solutions in the MENA region, while BNPL customers in regional markets will have greater access to international merchants. “Ultimately, it highlights the Middle East as a growing region for ecommerce and BNPL offerings,” he said.

Zip co-founder and CEO, Larry Diamond said ecommerce in the Middle East is on a significant upward trajectory. “We believe there is a large untapped opportunity to bring BNPL to emerging markets where cash on delivery remains a significant merchant challenge and where the digitisation of retail accelerates.”