The demand for BNPL services has been growing in emerging markets, with Spotii reporting 90 percent m-o-m growth since its founding.
Australia’s Zip, a publicly listed leading buy-now-pay-later (BNPL) company, has announced the full acquisition of Dubai's BNPL service Spotii, raising its shares to 100 percent after having purchased 20 percent of the provider in December 2020.
Spotii, founded in January 2020, gives shoppers flexibility with the ability to defer payments or pay over four equal installments without the headache of interest payments or hidden fees. It has provided services for over 40,000 customers and worked with 650 merchants across the region.
Spotii had already been integrated into Zip’s global Single Merchant Interface (SMI), which opens access for merchants to 11 countries across five continents, serving 6.4 million customers and 45,000 merchants. The full acquisition will enable Zip to expand its global outreach and footprint by establishing a MENA presence, namely in the UAE and Saudi Arabia, where Spotii is already operating.
In the announcement, Zip’s Co-founder and CEO Larry Diamond said that “The Spotii acquisition is an important step in Zip’s global expansion and international strategy, with eCommerce in the Middle East on a significant upward trajectory. We also believe there is a large untapped opportunity to bring BNPL to emerging markets where cash on delivery remains a significant merchant challenge, and where the digitisation of retail accelerates.”
Spotii’s Co-founder and CEO Anuscha Ahmed saw eye-to-eye regarding the value of BNPL in emerging markets: “Since founding Spotii in early 2020, we’ve seen significant uptake of the platform by merchants and customers, highlighting the appetite and need for BNPL solutions in the MENA region. Joining forces with Zip – a global leader in the BNPL space – will enable us to drive further growth by tapping into the company’s advanced technology and expertise.”
Spotii has reported that total transaction volume has grown at an average of 90 percent month-on-month since its inception.