Hello! Here's what you need to know for September 4th in 3 minutes.
Someone said Saturday is a Friday+ because you want to do two things: catch up on what you couldn't during the week and also rest. Talk about "work + rest" in the same category.
Anyway, for a Nigerian, Saturdays are for parties.
What’s going on? Australian Zip acquired Payflex of SA for an undisclosed amount - both are BNPL’s. Part of Zips’ strategy for this year 2021 is ‘global expansion’, and Africa is a growing market that cannot be ignored. In an earlier memo, we talked about Zip owning a 25% stake in South African Payflex. Payflex claims to be the first and biggest buy now pay later SA company, with over 1k merchants and 135k customers. Well, that 25% stake was 6 months ago. The latest - ‘Zip acquired Payflex’.
Zooming out. The acquisition of Payflex follows that of European BNPL provider Twisto and UAE-based startup Spotii earlier in May year. This has given the Australian company an on-the-ground presence in Europe and the Middle East, with a presence in 12 markets across 5 continents. Zip’s expansion into Africa is a good strategy for two reasons: a largely untapped market with massive growth potential - a sizable underbanked and digitally savvy population.
Looking ahead. BNPL would account for 9% of the ecommerce payments by 2023 in the entire European, Middle East, and African region - Buy Now, Pay Later in Africa: a strategy to drive inclusion. The market is still nascent with massive growth potential, especially when you considered the unbanked and underbanked having access to credit. if Zip can solve the underlying technology to facilitate frictionless BNPL transactions, we should expect to see more companies rushing in to get their own share of the pie - local and international.
But, one question still rings in my head - can we have BNPL for insurance? How will it work?
Enjoy your weekend!
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