QuadPay has confirmed a new collaboration with Australian publicly traded buy now pay later (BNPL) firm, Zip Co, to create a $1bn+ global payments company.
The partnership between the high-growth, US-based payment installment platform and Zip Co, seeks to significantly grow the North American BNPL market and expand the group’s reach to more than 3.5 million customers and 26,000 merchant partners worldwide.
It is backed up with $130m of capital, via convertible notes and warrants issued to prominent growth investor, Heights Capital Management, an affiliate of the US-based Susquehanna International Group (SIG), which will be used to accelerate domestic and global expansion..
QuadPay Co-CEO and Co-Founder, Adam Ezra commented: “Consumers are increasingly avoiding credit cards and gravitating to flexible BNPL options instead. Installment payment options are transparent, convenient, and give consumers greater control over their finances – they’ll soon become an expected component of the online shopping experience, as common as free shipping.
“We’re incredibly excited to be riding the wave of change and offering a product that is friendlier to the consumer than high-interest-bearing credit cards and digitized versions of traditional credit. We look forward to continuing the reinvention of payments for consumers and retailers in partnership with Zip.”
The collaboration comes as the market opportunity for BNPL in the US is one of the largest in the world, strengthening QuadPay’s position in the sector as BNPL is still in its infancy.
Brad Lindenberg, QuadPay Co-CEO and Co-Founder, added: “We are to our competitors what Stripe was to PayPal. While there are already some big names in the market, QuadPay is by far the most technically advanced.
“Our technology means that merchants as large as Target or Walmart could roll out QuadPay online in a couple of days. No other installment provider offers this speed of integration and becoming part of the Zip family will provide QuadPay with access to public capital markets to support our ever growing merchant base and transaction volumes.”
Accelerated growth and development
The partnership has outlined that trading as a public company enables the combined entity to access capital markets quickly and efficiently to support QuadPay’s ever-growing merchant base and transaction volumes, while providing further opportunity for:
- International expansion – post completion, the Group will have operations across the globe in five countries (US, UK, Australia, New Zealand, and South Africa). It will have combined annualized GMV of $2.0b, revenue of $167m, 3.5m customers and over 26k merchants.
- Accelerated product development – QuadPay was amongst the first BNPLs to leverage virtual-card technology in partnership with Stripe, demonstrating a strong culture of innovation. The additional funding will allow it to materially scale its product and engineering capability to further its lead in product and technology, benefiting merchants and consumers.
Zip CEO and Managing Director, Larry Diamond concluded: “Adam and Brad are proven entrepreneurs with a great product and high-growth business, so it’s great to welcome them and the QuadPay team to the Zip family. Together, we are united in a shared vision of disrupting the outdated credit card sector with digital, fairer alternatives.
QuadPay’s market-leading virtual card offering was one of the first to launch in its category, and the company has an unrivalled track record on customer innovation and delivering an exceptional experience for merchants. We look forward to the exciting road ahead.”
Expert Analysis: Marrying together these two firms’ experience and expertise in their respective markets can lead to a positive impact for not only the collaboration, but also the growth of the BNPL market in the US.