BNPL Platform Zip in Talks to Acquire Aussie Counterparty Sezzle

US-based BNPL platform Sezzle has confirmed talks about a potential merger with larger Australian player Zip, boosting Sezzle shares by 23%. 

BNPL platform Sezzle has a market cap of around USD 303.5 million, while its Australian direct competitor is valued at over USD 1.5 billion. 

Separate statements from the companies mentioned the talks about Sezzle being acquired by Zip are in their early stages and that a deal might not materialise soon. The talks started in November 2021 and came at a time of rapid consolidation in the BNPL market. The sector has seen a high increase during the pandemic as customers preferred an alternative payment method with interest-free installments, and this trend is likely to continue throughout year 2022. 

According to a Grand View Research report analysing the BNPL trends, the market size of this alternative payment solution was valued at over USD 4 billion in 2020 and is expected to expand by 22.4% until 2028. The encouraging trends also set Block, formerly known as Square Inc to buy sector bellwether Afterpay in one of Australia’s largest deal, showing the stiff competition in the market from global competitors like Zip and Klarna. 

(Source: The Paypers)