Zopa Acquires Payments Platform Rvvup to Expand Embedded finance Offerings
LONDON - September 2, 2024 - Zopa, the UK digital bank, has acquired Rvvup, a payments platform focused on simplifying payment processing for merchants. the acquisition, announced today, aims to bolster Zopa’s embedded finance capabilities and capitalize on growing demand from small- to medium-sized businesses (SMBs) for integrated financial services.
Rvvup offers a single integration point for new and existing merchants, promising deeper data insights, improved payment conversion rates, and lower processing costs within the next six months. For U.K. consumers, the platform provides a seamless payment journey with a wide range of payment method choices. Rvvup also automates payment processes, syncing with accounting tools like Xero and handling daily reconciliation.The move comes as embedded finance gains prominence, particularly among SMBs.Recent research by PYMNTS Intelligence, in collaboration with Worldpay, reveals that 65% of these businesses would consider switching vendors for those offering embedded finance solutions – not due to cost or service issues, but as of a lack of integrated financial services like payments, lending, and banking. PYMNTS reported in July that satisfaction with integrated finance capabilities is now the top predictor of vendor retention.
The importance of integrated payments extends beyond operational efficiency. smbs with access to well-integrated systems can potentially see revenue growth between 25% and 50%, depending on the sector, according to PYMNTS. Lack of payment choice can also lead to higher cart abandonment rates.
This is Zopa’s second acquisition in the embedded finance space, following the purchase of point-of-sale finance technology and lending platform dividebuy in 2023. Zopa recently raised £80 million ($107 million) in new capital to support the rollout of its upcoming bank account.