Nexi is selling its Ratepay payments business to pay-later company Affirm, which could mean more pay-later and invoice options at checkout in Germany, Austria and Switzerland.
Nexi, a European digital payments company, is selling its Ratepay payment business to Affirm, a buy now pay later company. The companies announced the deal on Monday, Nov. 9. They also signed a memorandum of understanding, a formal statement that two companies plan to work together, to expand their existing partnership.
Nexi and Affirm already work together in Germany, Austria and Switzerland. The new agreement widens that and sets out to explore new opportunities. Nexi CEO Bernardo Mingrone said the sale fits a strategy focused on core activities. He added that under new ownership, Ratepay can better strengthen its pay-later offering for its customers.
Pay later means a shopper gets an item now and pays over time or after delivery. Pat Suh of Affirm pointed to pay by invoice, where the shopper pays after receiving a bill. He said it is popular because shoppers know exactly what they owe and when.
Shoppers and online sellers in Germany, Austria and Switzerland are the ones most likely to notice. Affirm says it wants to earn the trust of more merchants and their customers. That points to more pay-later and pay-by-invoice choices at checkout over time.
The sale still needs customary regulatory approvals, which are expected in the first half of next year. After it closes, Nexi will give Ratepay and Affirm temporary help, including specialist on-the-ground support and technology expertise. The material does not say what Affirm is paying or when shoppers might see changes at checkout.
If you shop or sell online in Germany, Austria or Switzerland, watch for more pay-later and invoice options after the sale closes.
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