Adyen and Scalapay partner to develop BNPL

Adyen has announced a new partnership with Italian BNPL unicorn Scalapay. The fintech's solution will be integrated into Adyen's platform and made available to all merchants using the European giant's services. Scalapay will thus continue its expansion in Europe, particularly in its preferred market: Southern Europe.

FACTS

• This week, Adyen announced the launch of a partnership with the fintech Scalapay, a specialist in BNPL (Buy Now, Pay Later), which is widely used in Southern Europe.
• Adyen will offer Scalapay's services to all its customers, who will also be able to offer this service to their customers at the payment stage.
• In concrete terms, online merchants will be able to activate BNPL's solution in just a few clicks from their unified commerce platform offered by Adyen.
• Thanks in particular to machine learning, the payment experiences offered to consumers will be smoother, more secure, and the conversion rate should also increase for merchants.

CHALLENGES

• An important partner: The Italian fintech sees this partnership as a way of reaching a significant number of customers. Indeed, Adyen is one of Europe's leading financial platforms. Moreover, after Southern Europe, Scalapay will be able to take advantage of Adyen to accelerate its development in the rest of Europe.
• Significant added value for merchants: Scalapay sees itself not just as a BNPL solution, but as a conversion gas pedal that facilitates customer journeys for merchants. According to figures from the Italian unicorn, customers who offer its solution increase the value of orders placed on their sites by 48%, the conversion rate by 11% and the number of new customers by 55%.
• A strategy of multiplying acquisition channels: Scalapay appears to have mobilized several sources of customer acquisition. In addition to partners and direct integration with merchants, Scalapay has launched its app, a means of significantly increasing customer loyalty. Free to use, the application enables users to access products from partner merchants in a dedicated area. They can then pay directly on the app for online purchases, and even at the point of sale, thanks to temporary virtual cards.

MARKET PERSPECTIVE

• Scalapay has established itself as one of the leading BNPL solutions in Southern Europe, with over 8,000 partner brands and 6 million users according to its figures.
• However, Scalapay faces stiff competition in the BNPL sector in Europe. Leading players such as Klarna and Alma, and even neo-banks, have long been competing for market share.
• On a more global level, the evolution of BNPL regulations in Europe could force players in the sector to rethink their processes for granting split payments. Developing an application to build customer loyalty may be one way of protecting against the potential tightening of BNPL rules.