The big processor Global Payments Inc. announced early Tuesday it will acquire Zego Inc., a payments and technology provider for managers of residential real estate, in a deal valued at approximately $830 million. The company also announced an agreement to buy the PayOne acquiring business in Austria belonging to the French processor Worldline S.A. The two deals together will total about $1 billion, company officials said.
Jeff Sloan, Global Payments’ chief executive, told equity analysts Tuesday the Zego deal should close later this quarter, while the PayOne acquisition will close in the second half of the year. “With Zego, we will enter one of the most attractive vertical markets in the world, real estate,” Sloan said.
Kansas City, Mo.-based Zego processes $30 billion in payments annually for 7,300 clients managing 11 million residential units. The PayOne acquisition comes shortly after Worldline’s massive $8.6-billion acquisition of Ingenico Group S.A., a French maker of payment terminals and other transaction technology. “We initiated a greenfield acquiring business in Austria 18 months ago. The PayOne acquisition lets us grow that faster,” said Global Payments president Cameron Bready during the call with analysts.
New research from The Strawhecker Group analyzes key trends and consumer attitudes.
Download a free infographic covering several findings from the full report.
Consumers have increasingly adopted Buy Now, Pay Later (BNPL) services for multiple reasons; a desire for financial flexibility, a way to avoid incurring credit card debt, or to purchase items outside of their budgets. However, despite its popularity, consumer debt and missed payments have led to calls for additional research and regulation. Read the press release.
To take a closer look, The Strawhecker Group (TSG) conducted a survey of over 1,500 U.S. consumers in early 2021 with the goal of understanding domestic attitudes and perspectives on the use of BNPL services. The complete findings, a selection of BNPL provider profiles, and market landscape details can be found in the firm’s new report Buy Now, Pay Later: An Analysis of Key Trends and Consumer Attitudes.
Highlights of this extensive 81-page report include:
- Buy Now, Pay Later Background
- Key Players in the Buy Now, Pay Later Space
- Buy Now, Pay Later Consumer Survey
- Concluding Thoughts: The Future of Buy Now, Pay Later