Could we see more BNPL consolidation this year? – Detachable sheet
2021 has been an active year for fintech consolidation, so what could this year hold for us?
When thinking about where M&A fever might hit next, some of the most obvious places to look are markets with lots of players, hype and money. Um, so… BNPL?
Just yesterday, Australian company BNPL Zip confirmed it was in talks to buys out its American rival Sezzle, adding to its transaction repertoire as it seeks to compete with Klarna and Afterpay in the booming BNPL market.
Given the growth and interest in the space, companies are already looking to get a piece of the BNPL pie. Last year, we saw Square buy Afterpay in an all-stock deal worth $29 billion – the biggest M&A deal of the year in US fintech. PayPal Pay in 4’s BNPL product will be joined by a acquisition of Japanese BNPL Paidy in a $2.7 billion deal.
And the banks are doing it too. Goldman Sachs has acquired BNPL GreenSky for $2.24 billion and will integrate it into Marcus by Goldman Sachs, its consumer business.
As fintechs mature in their niche markets – providing specialized products, establishing broader customer bases and growing their brands – the big players could continue to see this as an opportunity and go for it.
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