Nexi Payments Could Unload BNPL Unit Ratepay

Italian payments group Nexi is reportedly mulling the sale of the German buy now, pay later (BNPL) firm Ratepay, which it picked up two years ago when it bought Nordic payments firm Nets.

According to a Bloomberg report Thursday (Feb. 10) that cited sources with insider information, Ratepay has a possible valuation estimated at over €1 billion ($1.1 billion). The company offers BNPL and other payment options that eCommerce merchants can offer shoppers.

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A popular interest-free installment payment option, BNPL has become especially in vogue with millennials and Gen Z.

A substantial analysis is underway by Nexi to determine if the sale of its Ratepay unit makes sense, the sources told Bloomberg. Discussions are underway and anything could be decided, including hanging on to the division.

Nexi also announced its full year earnings for 2021 on Thursday, and said the numbers aligned with targets. Nexi’s earnings before interest, taxes, depreciation and amortization (EBITDA) increased 12.1% to €1.09 billion ($1.25 billion) last year. Revenues in 2021 were €2.27 billion, up 10% over the previous year.

See also: Deep Dive: How BNPL Solutions Are Answering Gen Z’s And Millennials’ Financial Needs

BNPL interest-free installment payment plans have become all the rage in the past few years, with new rivals popping up on the scene in several countries. A PYMNTS survey earlier this month showed that about 20% of U.S. consumers are currently using BNPL.

The population demographics that make the most of BNPL have several variables, including financial lifestyle, generation and income. The survey showed that 34% of respondents living paycheck to paycheck use BNPL, with 34% of millennials also using the interest-free installment service.

People earning over $100,000 are not as likely to use it, with 23% of respondents giving it a go.