Digital lender Zopa has mentioned that it’s to buy buy-now pay-later agency DivideBuy because it kicks off a dealmaking push following a funding spherical earlier this yr.

The deal marks the London-based financial institution’s first acquisition and comes after it raised a £75m warchest in January, which bosses mentioned could be channelled into dealmaking. Zopa didn’t disclose the worth of the deal this morning.

The 2 companies are actually set to crew as much as provide credit score to prospects for greater purchases between £250 and £30,000. It comes after the financial institution first introduced a push into the crowded BNPL market in June final yr with what it referred to as BNPL 2.0.

“This acquisition helps us convey to life BNPL 2.0, an evolution of BNPL which we consider delivers the simple, built-in product which prospects love while additionally addressing a number of the points round affordability and accountable lending which have plagued the sector,” Zopa boss Jaidev Janardana mentioned at present.

Zopa, a licensed financial institution, will provide prospects a completely regulated product to prospects. The launch comes because the Treasury confirmed earlier this week that it might grant the FCA powers to manage the sector this yr.

DivideBuy permits retailers to supply their prospects curiosity free fee choices at checkout. Consumers can unfold the price of their purchases over a 2-12-month interval with over 400 retailers.

Robert Flowers, CEO at DivideBuy mentioned in an announcement “we had been delighted to be approached by Zopa in its seek for a POS finance supplier to help its imaginative and prescient of constructing Britain’s greatest financial institution.”