By Oliver Smith on Friday 24 September 2021
Zip has taken a minority stake in its Indian rival ZestMoney.
Zip said its investment was part of its plan to build a global BNPL business, with India as a key market where ZestMoney already has over 11m registered users and over 10,000 online merchants.
“With more people using digital payments and online shopping, ZestMoney can positively impact hundreds of millions of lives in the coming years.”
The fintech has been on an acquisition spree these last few months, snapping up Twisto Payments in Europe, UAE-based Spotii Holdings and Payflex in Africa.
As part of this latest investment, Zip says it has negotiated terms to increase its shareholding in ZestMoney over time, hinting that a full acquisition could be on the horizon.
By 2025 ZestMoney expects buy now, pay later to have overtaken credit card payments in India, with between 80-100m users in a BNPL market worth around $120bn.
“We believe India will leapfrog traditional products like credit cards, along with many other emerging markets, going straight to digital payment solutions,” says ZestMoney CEO and co-founder Lizzie Chapman.
“We strongly believe India will emerge as the largest BNPL market in the world over the next 5 years.”