Digital bank Zopa has broadened its payments capabilities through a strategic acquisition.
The fintech firm has acquired Rvvup – a platform engineered to simplify businesses’ payment acceptance, collection and administration processes, as reported by City AM.
Zopa stated the purchase will triple its embedded finance division’s scale within two years, encompassing the integration of financial services into non-financial platforms. The company also anticipates the transaction will establish it as a leading three competitor in retail finance over the next five years.
Specialist lending institutions have capitalised on retail financing opportunities as major banks withdrew from the sector.
Data from the Finance and Lease Association (FLA) showed the opening quarter of 2025 witnessed a 6% rise in retail finance compared to the equivalent 2024 period, with unprecedented £12bn in fresh lending recorded in March alone.
Zopa indicated the Rvvup acquisition will enable it to “accelerate” its retail finance proposition by establishing a seamless payment ecosystem spanning point-of-sale lending to comprehensive modern payment method support.
However, the challenger faces significant competition as it seeks to capture retail financing market share from established players who have filled the void left by major banks.
FTSE 250 lender Secure Trust claimed the third position in the marketplace after exceeding £1.35bn in customer loans during 2024.
Zopa on a growth push
The acquisition arrives during an ambitious expansion drive from Zopa, which doubled its pre-tax profits in the 2024 financial year to £34.2m. The bank unveiled its current account “Biscuit” in June, outlining its strategy to compete with the UK’s high street behemoths.
Merve Ferrero, Chief Strategy Officer at Zopa Bank, told City AM in June: “What we have tried to do is build a product that leverages the technology of a neobank but gives the value no one else does.”
The company is also being considered as one of several fintech IPOs that Chancellor Rachel Reeves hopes could stimulate a revival in City markets.
In April, CEO Jaidev Janardana told City AM: “I feel that free opening of IPOs is far out and the current market conditions do not have that at all.”
