Grab Looks to Pick Up BNPL Firm Atome Financial

That deal could value Atome at more than $2 billion, Bloomberg News reported Thursday (Sept. 10), citing sources familiar with the talks.

As Bloomberg notes, Grab has been working to fuel growth through acquisitions. The company this year acquired Stash Financial in the U.S. for $425 million, as well as meal-delivery firm Foodpanda’s Taiwan business from Delivery Hero for $600 million.

Grab in August increased its annual earnings and sales forecasts, a signal that string demand from commuters is helping to offset the impact of higher fuel prices connected to conflict in the Middle East, the report continued. Revenues rose 22% year over year to $997 million with Grab’s operating profit coming to $19 million, a 186% increase.

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With Atome (“which stands for Available to me”), Grab would be acquiring a buy now, pay later (BNPL) provider serving eCommerce and brick-and-mortar retailers in the fashion, beauty, lifestyle, travel, fitness and homeware segments, the report added.

Atome last year saw a 80% jump in revenue to $470 million, helping the firm reach its second-straight annual profit before taxes, Bloomberg said.

In other BNPL news, recent PYMNTS Intelligence research finds that the installment payment option is finding an audience among superprime consumers.

Consumers who spread their purchases across BNPL “providers are also the ones most prepared to pay for something BNPL was built to avoid: interest,” PYMNTS wrote last month. “That distinction may impact how far the product can move beyond Pay in 4.”

Research from  “Beyond Pay in 4: Many BNPL Buyers Would Pay for More Time,” the August edition of The Pay Later Ecosystem Report, shows that among consumers using at least four BNPL providers, 82% said they would pay interest in return for access to a longer repayment schedule. That’s compared to 46% for consumers who use only one provider, while users of two or three providers sat in the middle at 70%.

“The gap suggests that BNPL’s most active customers could provide a natural market for longer-duration credit,” the report added. 

“They already use multiple providers, and their willingness to accept interest indicates that at least some are looking for how long they have to repay.”