Grab Looks to Pick Up BNPL Firm Atome Financial

Ride-hailing and food delivery giant Grab is reportedly in talks to acquire Singapore-based buy-now-pay-later (BNPL) provider Atome Financial, a deal that could be worth over $2 billion, according to Bloomberg News. The acquisition would significantly boost Grab's reach in the eCommerce and brick-and-mortar retail sectors, particularly for fashion, beauty, lifestyle, travel, fitness, and homeware industries.

Grab has been aggressive in expanding through acquisitions recently, including the U.S. buy of Stash Financial for $425 million and the acquisition of Foodpanda’s Taiwan business from Delivery Hero for $600 million. Atome saw an 80% increase in revenue to $470 million in the previous year, reaching its second consecutive annual profit before taxes.

With Atome, Grab would provide longer repayment schedules, as consumers who use multiple BNPL providers are more inclined to pay interest for such flexibility. A recent PYMNTS Intelligence study found that 82% of BNPL users who leverage at least four providers would pay interest for extended repayment periods, compared to 46% among those who use only one provider.