Zopa Buy Now, Pay Later DivideBuy Apparel is the first acquisition in a $75 million campaign raised earlier this year.

DivideBuy allows merchants to offer customers interest-free payment options at the checkout. Buyers can spread the cost of their purchases over a period of two to twelve months from over 400 merchants.

According to Zopa, DivideBuy will provide credit for large purchases between £250 and £30,000.

The company intends to implement credit and accessibility checks for all applications, report debt positions to credit reference agencies, and provide proprietary tools to help customers repay debt. The deal is expected to increase Zopa’s revenue by at least 20% over the next few years.

“This acquisition helps us bring to life BNPL 2.0, an evolution of BNPL which we believe delivers the easy, integrated product which customers love whilst also addressing some of the issues around affordability and responsible lending which have plagued the sector.”

Zopa CEO Jaidev Janardana.

In January, Zopa raised £75m in funding, which it said would be channeled to fuel mergers and acquisitions activities in the first quarter of 2023.

Terms of the transaction with DivideBuy were not disclosed.