The news: Buy now, pay later (BNPL) provider Zip acquired South Africa-based BNPL startup Payflex in a deal with undisclosed terms, according to a press release. Payflex, which launched in 2019, has more than 1,000 merchants and roughly 135,000 customers.
Why it's worth watching: We previously called out Africa as a region that remains largely untapped by global BNPL players—giving Zip plenty of room to grow.
As Klarna and other major providers expand their presence in Western markets like the UK and US, Zip is taking advantage of the growth potential and the limited presence of major BNPL players in Africa. The Payflex acquisition also reflects Zip’s growth tactic—expanding via acquisitions instead of direct moves into new markets: In May, Zip acquired United Arab Emirates-based BNPL firm Spotii and Czech Republic-based provider Twisto.
The opportunity: Zip’s Payflex acquisition might be a catalyst for further expansion into Africa.
Related content: Interested in learning more about current and future BNPL potential in global markets? Check out our data deep dive, where we explore BNPL growth opportunities and threats and what they mean for industry stakeholders.