Twisto Payments

About Twisto Payments

Twisto Payments a.s. operates as a prominent “Buy Now, Pay Later” (BNPL) provider in Central and Eastern Europe, offering a suite of flexible payment and shopping solutions. The company was established in Prague in 2013 by Michal Smida to address the high prevalence of cash-on-delivery payments in the Czech Republic's e-commerce sector. Smida, who previously worked in investment banking at Barclays Capital in London, was inspired by the success of companies like Klarna and PayPal in Western markets and sought to introduce a similar service to the CEE region.

The firm's core business revolves around providing deferred payment options for online and offline purchases. Its business model initially centered on B2B integrations with e-commerce merchants, where Twisto pays the merchant upfront and assumes the credit risk, allowing customers to pay later. Revenue is generated through merchant fees, which in turn benefit from higher conversion rates and order values, as well as interest fees from consumers who opt for longer installment plans. The company operates on a subscription model for its users, offering different tiers of service plans with varying benefits.

Twisto’s product lineup includes the 'Twisto Pay' button for one-click online checkouts, allowing payment up to 30 days later, and a popular 'Pay in 3' interest-free installment option. For registered users, the platform offers a comprehensive mobile app that consolidates all monthly spending into a single statement, virtual and physical Mastercard-powered cards for use anywhere, and features like 'Twisto Snap' for paying invoices via photo. A key component of its operation is a proprietary, AI-driven risk assessment engine named 'Nikita', which analyzes a customer's digital footprint to make credit decisions in milliseconds.

The company's journey has been marked by significant milestones, including expansion into Poland in 2018 and serving nearly one million customers by 2021. A pivotal moment occurred in November 2021 when Australian BNPL giant Zip Co acquired Twisto for approximately €89 million, providing it with a European Payment Institution license to operate across all 27 EU member states. Subsequently, in August 2023, as part of a strategic shift by Zip, Twisto was acquired by the Turkish fintech leader Param, aiming to foster further sustainable growth across Europe.