Paywerk, Tallinn-based fintech company specializing in cross-border BNPL (Buy Now, Pay Later) solutions, has been fully acquired by Swedish banking group Swedbank AB, with the terms of the transaction remaining undisclosed. Founded in 2021, Paywerk has developed a platform that enhances the e-commerce experience by connecting European e-shops with multiple financiers, enabling faster, secure, and more engaging transactions for customers. This acquisition also includes the purchase of a 21% stake from Inbank Ventures OÜ. Consequently, Paywerk’s management board members will step down as the transition concludes.
Founded in 2021, Paywerk emerged as a disruptive force in the cross-border BNPL (Buy Now, Pay Later) space. The company, established by entrepreneurs Jan Andresoo, Priit Põldoja, Erkki Saarniit, Rain Pikand, Jaak Erm, and in partnership with Estonian fintech Inbank, introduced a technology designed to enhance the shopping experience by bridging European e-shops with secure, user-friendly payment solutions.
As part of the acquisition, Inbank Ventures OÜ, a subsidiary of Inbank AS, has divested its 21% stake in Paywerk to Swedbank. This move highlights Swedbank’s commitment to integrating cutting-edge fintech solutions into its existing infrastructure.
“Paywerk created unique technology and a product, but building a distribution network proved to be complex and expensive. Paywerk’s independent growth strategy was very capital-intensive, and we couldn’t find an investor to support such a strategy in the current interest rate environment. This is why I’m very pleased that Swedbank’s investment allows Paywerk’s technology to take off,” explained Paywerk founder and CEO Jan Andresoo about the sale.
Priit Põldoja, Chairman of the Board and CEO of Inbank, expressed optimism about the deal’s implications for the broader banking sector:
“I hope this becomes a broader trend in banking and creates a new business architecture that favors such synergies,” added Põldoja.
Paywerk’s BNPL solutions have gained traction among European e-shops, offering features like higher approval rates, increased average shopping cart values, and zero cost for shoppers. With Swedbank’s backing, these capabilities are poised for expanded reach and impact across the continent.
The acquisition also marks a significant shift in Paywerk’s management structure. With the transaction’s closure, the roles of Jan Andresoo, Priit Põldoja, Raino Paron, and Marko Varik on Paywerk’s Management and Supervisory Boards will come to an end.
As Swedbank integrates Paywerk’s technology, the fintech landscape will be watching closely to see how this strategic move reshapes the future of BNPL services and banking partnerships.
Click here to read more IPO/M&A news.
Read the orginal article: https://arcticstartup.com/paywerk-acquired-by-swedbank/
