Santander launches buy now pay later product to take on fintechs
Santander will roll out a new buy now pay later platform across its European markets as the bank looks to boost revenues and fight off fintech competition.
The firm says that the launch of Zinia, the new BNPL service, in the Netherlands later this year will be the first step in a wider European expansion as it looks to snap up a share of the market from fintech firms like Klarna and Clearpay.
Zinia will offer shoppers the opportunity to pay in interest-free instalments either online or at physical points of sale.
The launch comes as Klarna expands its new physical card to British customers today in its first foray into UK offline payments, after previously launching the card in Germany and Sweden.
Ezequiel Szafir, CEO of Openbank and Santander Consumer Finance, said: “Today we are launching a new platform that offers consumers a convenient and flexible payment option with the security and trust provided by a large financial group like Santander.
“We are delighted with Zinia’s early expansion and aim to become a leader in the buy now, pay later market”.
The platform will also be rolled out in the Nordic countries, Britain, France and Italy, and in its U.S. market, a Santander spokesperson told Reuters.
The technology behind Zinia has been operating in Germany for the past year where it has already acquired more than two million customers, which Santander bosses say makes it one of the leading European BNPL players by customer volume.