Silicon Valley based payment company Affirm has agreed to acquire PayBright, one of the leading Canadian players in the growing “buy now, pay later” payment industry.
Affirm said in a press release Thursday that it has agreed to pay $340 million for PayBright, which is works with 7,000 retailers to give customers the option to pay for their purchases in instalments.
The instalment payment business is growing rapidly around the world — especially among younger consumers — as an alternative to credit cards, because it allows them to pay for their purchases in staggered payments that come with either no interest, or far less than are charged by conventional payment means.
Toronto-based PayBright works with 7,000 retailers across Canada and around the world including Hudson’s Bay, Oakley, SAIL, Steve Madden, eBay, Dynamite, SHEIN, Wayfair, Samsung, and Endy.
PayBright’s model typically allows the consumer to get their purchase up front, and pay for it with four bi-weekly interest-free payments, or over 60 months for larger purchases. The company says it does not charge hidden fees, retroactive interest or revolving interest on purchases.
Australia’s AfterPay, a similar company, is a global leader in the space which recently launched in Canada. Affirm is another major international player, accepted by 6,500 retailers around the world, and is reportedly getting ready to go public with a valuation of up to $10 billion US.
“We built PayBright with the mission of making the everyday commerce experience simply better for Canadians,” PayBright’s CEO Wayne Pommen said in a release. “Partnering with Affirm gives us the opportunity to deliver on that promise on a much larger scale … As part of a larger, multinational organization, we can help even more merchants attract new customers and provide a greater number of consumers with more control and flexibility in their purchasing decisions.”
The deal is expected to close in the first quarter of next year. Currently, PayBright employs about 200 people in Canada. All are expected to join Affirm if and when the deal goes through.