Zip buys its way into Europe, Middle East

·1-min read

Buy now, pay later provider Zip is expanding to Europe and the Middle East after agreeing to buy two companies for $160 million.

Zip will buy European firm Twisto Payments for $140 million and emerging payments provider Spotii of the Middle East for $20 million. Both are buy now, pay later providers.

The purchases, expected to be completed later this year, follow Zip's entry into the US and UK.

Twisto has annual revenue of $12 million after being set up in 2013.

It's currently offered in the Czech Republic and Poland, and could be rolled out to other European nations.

Royal Bank of Canada analyst Tim Piper said Twisto was about one tenth of the size of Afterpay's UK subsidiary Clearpay.

However, Zip gained access to a European market experiencing high uptake of buy now, pay later options, he said.

Spotii was founded last year in the United Arab Emirates.

There are about 650 businesses offering its payments service.

Zip did not provide annual revenue details, but said the value of all purchases made using Spotii was growing by 90 per cent each month.

Zip first bought shares in Twisto and Spotii late last year as part of its foray into new territories.

The company in April raised $400 million from convertible notes for overseas opportunities.

Shares were higher by 1.14 per cent to $7.12 at 1332 AEST.