Payflex, which was founded in 2018, allows customers to purchase now and pay later, interest-free. It debuted in 2019 with Superbalist.com and is currently available for over 1,000 online shops.
Zip, on the other hand, is a market leader in digital retail financing and payments. Retail, residential, health, automotive, and travel industries use the company’s point-of-sale credit and digital payment services.
Zip intends to develop its South African company and expand into additional African areas with large underbanked, technologically aware populations that would benefit from new payment solutions. Zip now operates in 12 nations across five continents. Considering this, it has declared its desire to purchase Payflex in its entirety.
“The growth of Payflex over the past few years has demonstrated the demand for buy now, pay later in South Africa. Zip’s acquisition will boost the speed and scale of Payflex’s expansion and allow merchants and shoppers to benefit from Zip’s world-class products, platform, and global reach. It is also a significant vote of confidence in the all-South African Payflex team, which will remain unchanged and focused on growing the business,” said Paul Behrmann, founder and chief executive officer (CEO) of Payflex.
The previous year has been “really transformative” for Zip, according to Larry Diamond, managing director, and CEO, as the company continued to perform amid the most extreme global economic conditions.
“We started the year with a clear strategy for global expansion, and we have seen record growth, ending the year with US$5.8 billion in total transaction volume, and more than 7.3 million customers and 51,000 merchants around the world,” he said.
“The shift away from the unfriendly world of credit cards that was the genesis of Zip’s Australian business, and it’s proven to be a global phenomenon. Millennial and Gen Z customers are consistently demonstrating their appetite for the simpler, fairer payment options that Zip is providing. This global play supporting customers and global retailers alike provide a real point of difference as we strive to become the first payment choice and a trusted and innovative, global payments brand.”
