Zopa Group, the digital bank serving 1.5 million customers, has acquired payments platform Rvvup in a deal designed to transform and accelerate its retail finance offerings.
The acquisition gives Zopa access to Rvvup's payment technology, which the bank plans to use to enhance its point-of-sale financing products. By integrating Rvvup's capabilities, Zopa aims to offer merchants and consumers more flexible payment options at checkout.
Retail finance—including buy-now-pay-later and installment lending—has become a competitive battleground in financial services. Consumers increasingly expect the option to split purchases into smaller payments, while merchants see these offerings as a way to boost conversion rates and average order values.
Zopa, which started as a peer-to-peer lender before obtaining a banking license, has been building out its product suite beyond traditional savings and loan products. The Rvvup acquisition represents a strategic push into the merchant services and retail finance space.
Rvvup's platform connects to various payment methods and financing options, providing merchants with a unified interface for managing transactions. This infrastructure will allow Zopa to embed its lending products directly into the checkout experience at retail partners.
For Zopa's customers, the integration could mean more opportunities to use flexible payment options when shopping online or in stores. For merchants, it offers access to Zopa's customer base and lending capabilities through Rvvup's technology layer.
The deal reflects broader consolidation in the payments and lending sectors, as companies seek to offer more comprehensive solutions rather than point products. Banks and fintechs are increasingly competing not just on rates and terms, but on the seamlessness of the customer experience.
Zopa has differentiated itself through competitive rates on savings accounts and personal loans, building a reputation for customer-friendly products. Expanding into retail finance allows the bank to reach customers at the point of purchase, rather than waiting for them to seek out a loan product.
The acquisition also positions Zopa to compete more directly with established buy-now-pay-later providers and other digital banks moving into merchant services. As the retail finance market matures, having integrated payment and lending technology becomes increasingly important.