European digital payments infrastructure company Nexi is selling its payment provider business Ratepay to buy now pay later (BNPL) company Affirm.
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As part of the deal, Nexi and Affirm inked a memorandum of understanding to expand their current partnership in Germany, Austria and Switzerland and explore new opportunities together, the companies said in a Monday (Nov. 9) news release.
“The divestment is in line with our strategy focused on core activities and optimized portfolio to generate greater value for all our stakeholders,” said Nexi CEO Bernardo Mingrone.
“At the same time, given the commercial fit between Ratepay and Affirm, the new ownership will better enable Ratepay to strengthen their BNPL offering to the benefit of their customers and us as partners.”
Following the closing of the agreement, subject to customary regulatory approvals expected in the first half of next year, Nexi will provide “transitional support” to Ratepay and Affirm such as specialist on-the-ground support and technology expertise,” the release added.
“Pay by invoice is popular for a simple reason: shoppers know exactly what they owe and when. Affirm was built on that same commitment to transparency,” said Pat Suh, Affirm senior vice president and managing director of Global Markets.
“Together with Ratepay’s team, our focus is on earning the trust of even more merchants and their customers.”
In other BNPL news, recent PYMNTS Intelligence research shows that pay later companies competing on monthly payment size, total cost and interest-free terms are dealing with vastly different definitions of “an attractive offer” where households with children are concerned.
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