Australian company Zip is making business moves in South Africa, this week the company bought Payflex, the South African buy now and pay later firm for an undisclosed amount of cash.
BNPL payment services has been making headlines recently, its a trend that is at the upward trajectory. Last month we saw Jack Dorsey’s Square payments service buying Afterpay. On the other hand the likes of PayPal, Apple and Visa going the party and making moves in this BNPL space.
According to TechCrunch, countries such as Australia, UK and US are major markets for BNPL services. The US market is so big that the number of BNPL service users is expected to hit 45 million by year’s end, representing an 81% growth from last year
Before fully acquiring Payflex, Zip had a 25% stake when it invested in the South African BNPL service six months ago.
Payflex was founded in 2017, claims to be the first and largest BNPL player in South Africa with more than 1,000 merchants and 135,000 customers.