DivideBuy

The firm's business model is distinctive because it functions as both the technology provider and the direct lender, a structure that allows it to control the entire lending process. This integration enables the company to offer a streamlined service with faster credit decisions, aiming to reduce the complexities and costs associated with the traditional broker model where the tech platform and the financial institution are separate entities. DivideBuy generates revenue by partnering with retailers, who pay to offer the company's interest-free credit solutions to their customers. This helps retailers increase sales, reduce basket abandonment, and grow average order values. The firm serves over 500 retail partners across various sectors, including e-commerce and in-store businesses like property conveyancing and vehicle repair.

DivideBuy offers a POS credit solution that allows shoppers to spread the cost of purchases over two to twelve months. Its technology includes an e-commerce plugin that integrates with major platforms like Shopify, Magento, and WooCommerce. A key feature is the 60-second application process which uses soft credit checks that do not affect a consumer's credit score to provide an instant lending decision. This process is designed to improve approval rates for retailers. Following its February 2023 acquisition by the digital bank Zopa, the service was expanded to facilitate financing for larger purchases, ranging from £250 to £30,000. This acquisition was part of Zopa's strategy to launch a 'BNPL 2.0', combining an integrated user experience with the affordability checks and regulatory safeguards of a licensed bank.