Param eyes expansion after buying Czech BNPL fintech Twisto

Param, a Turkish embedded finance company, is eyeing an expansion into European fintech after announcing a deal for Czech BNPL firm Twisto

Turkish fintech Param has today announced the acquisition of Czech buy-now-pay-later (BNPL) provider Twisto, as part of the fintech’s strategy to grow its footprint throughout Europe.

Twisto is a pioneer of the Czech BNPL scene, becoming one of the first companies to offer deferred payments when it launched before adding a ‘Pay in Three’ option to its platform last year. In total, the firm has processed over 33m transactions and recorded a total transaction value (TTV) of €845m to date.

The acquisition will see Param initially focus on Twisto’s core markets of Poland and the Czech Republic – as well as the UK, Germany and the Netherlands. Param intends to launch its range of embedded finance solutions, designed for SMEs and large corporates, through Twisto, allowing the Czech firm to attract more customers and unlock additional sources of revenue. Embedded finance, payments, prepaid cards, digital wallets, SME lending and loyalty programmes could be the next additions to Twisto’s platform.

Between them, Param and Twisto serve more than 85,000 merchants including Burger King, IKEA and Pizza Hut. The acquisition will complement Param’s existing BNPL offering in Turkey, called Kredim, which has already handed out over half a million consumer loans.

Turkish fintech must be having its moment, as this is the second acquisition by a Turkish fintech intent on expansion in the space of just a month-and-a-half. In July, Papara announced a deal for Spanish neobank Rebellion as part of its growth ambitions. Like Param, Papara has also been cash-positive since inception, bootstrapping its way to unicorn status.

Param-Twisto deal ‘a meeting of the minds’

The two firms say the deal will also help position Twisto towards profitability. The fintech will lean on Param’s experience in that regard; the Turkish company describes itself as “highly profitable”, having seen 90% year-on-year growth in its TTV over the last 12 months. Param’s TTV alone is over €4.2bn, and the company expects the combined TTV of the newly merged entity could become €20bn a year.

Emin Can Yılmaz, Founder and CEO of Param, says: “Europe is a core focus for us as we continue our bold yet healthy and sustainable expansion strategy. Our proven business model and innovative solutions have already set a gold standard, and we are excited to introduce our technology and embedded finance solutions to eight European markets.

“Not only does the acquisition give us the opportunity to expand our position in the fintech ecosystem, it also represents a meeting of minds. Twisto already claims the number one position in BNPL services in the Czech Republic with a strong, recognisable, and top-of-mind brand awareness. Twisto puts consumers at the core of its business and continuously innovates to deliver reliable and value-adding products to its customers. There is a significant overlap between Twisto’s business model, the founders’ vision, and the group.”

"In Param, we have found a partner that has proven time and time again the strength of its business model and thirst for payments innovation,” adds Twisto CEO Michal Šmída. “We believe that with this knowhow, Param will make a significant contribution to the further sustainable growth of Twisto as we get closer to achieving profitability. In the meantime, we will continue to look for new quality growth opportunities in our region and Europe with the certainty of support from Param.”

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