AppToPay is a provider of payment technology that enables consumers to spread the cost of their purchases over an extended time, at no interest or additional fees
STB has agreed to acquire AppToPay. (Credit: Jan Vašek from Pixabay.)
British retail and commercial banking firm Secure Trust Bank (STB) has agreed to acquire AppToPay to support its planned entry into the digital Buy-Now-Pay-Later (BNPL) market.
AppToPay is a provider of payment technology that enables consumers to spread the cost of their purchases over an extended time, at no interest or additional fees.
The company is authorised by the Financial Conduct Authority (FCA).
With the acquisition, STB intends to integrate the AppToPay platform into its existing technology offering, to provide a regulated digital BNPL product.
The acquisition will help speed up STB’s entry into the digital BNPL market, and reduce the time required for product development, said the company.
STB CEO David McCreadie said: “I am delighted to announce the acquisition of AppToPay.
“V12 Retail Finance has already built a strong, established position in point-of-sale retail finance, thanks to its strong relationships and embedded technology with many of the UK’s leading retailers and extensive market knowledge.
“This transaction is a natural next step for us, opening up attractive new opportunities for our existing customers and providing us with access to a new, fast-growing specialist lending market.”
STB provides point-of-sale retail finance, through its business unit V12 Retail Finance.
It has a network of more than 1,400 retailers and more than 840,000 consumers and specialises in providing large, and longer-duration loans.
The acquisition is expected to close in the first quarter of 2022 subject to regulatory approvals.
After closing, STB will roll out its new digital BNPL offering across its existing retailer network alongside its current retail finance products, under a new brand name, AppToPay.
The acquisition represents an important step in its strategy to seek attractive returns in niche segments and scale its core businesses, said STB.
According to the bank, AppToPay may scale over time and become an important incremental offering for its V12 Retail Finance platform.
McCreadie added: “The credit market is undergoing a structural transformation; digital BNPL has already been welcomed by a large number of consumers in the UK and is fast becoming established as a mainstream alternative payment option due to its ease of use and interest-free pricing.
“We have no doubt that this market will continue to grow rapidly, and that STB is very well-placed to capitalise on the opportunity.”