Australia-based Buy Now, Pay Later (BNPL) Fintech firm Zip Co has reportedly decided to expand its global operations. Zip has received a strategic investment in TendoPay, a BNPL service provider operating in the Philippines.
This latest investment marks Zip’s initial steps into Southeast Asia, which will also be serving as a gateway for the BNPL firm’s business expansion into the region.
Recently, Zip launched central operations and commercial teams in Singapore, in order to support its expansion efforts in Southeast Asia.
Launched in 2018, TendoPay provides digital or online installment plan solutions, with a special focus on promoting responsible lending. The TendoPay platform gives consumers the flexibility of making easy installment loans for online purchases and a choice of repayment terms (anywhere from 15 days to 24 months).
TendoPay is also provided as a worker engagement benefit, with the Fintech firm teaming up with major employers in the Philippines to offer financial wellness to staff members.
The digital commerce market in the country is expected to expand to around $12 billion (30% CAGR until 2025) along with a fast-growing digital economy, which is projected to grow to about $28 billion by 2025.
Zip’s latest investment will offer TendoPay access to the expertise, finance and global network required to further accelerate growth and introduce international best practices to the Southeast Asia region. This should lead to consumers being able to gain access to a wide range of “fair” and flexible digital payment options at checkout.
Larry Diamond, Co-founder and CEO at Zip, stated:
“The e-commerce market in the Philippines is growing significantly, and consumers are looking for fairer, more flexible and accessible ways to pay. We recognise and align with TendoPay’s focus on building responsible lending products for consumers and its risk analysis systems. We will work together to drive growth and market leadership, helping deliver the best experiences for merchants and consumers in the Philippines.”
Kacper Marcinkowski, TendoPay, Co-Founder and CEO, remarked:
“Our partnership with Zip will support the Philippines’ rapidly evolving e-commerce sector. As market leaders, Zip will provide us with increased expertise, technical know-how and access to a global merchant network. It will also enable TendoPay to accelerate its growth and bring international BNPL best practices to the Philippines. The acquisition will give Tendo’s merchants access to new geographic opportunities.”