Zopa expands embedded finance with acquisition of AI-powered payments startup Rvvup — TFN

London-based digital bank Zopa has acquired payments automation platform Rvvup Ltd in an undisclosed deal. The acquisition supports Zopa’s goal to become one of the UK’s leading retail finance providers by combining lending, banking, and payments into a unified embedded finance offering.

Behind Rvvup: AI-powered Payments Platform 

Founded in 2021 by David Nunn and backed by HV Capital and Lakestar with £5.6 million in seed funding, Rvvup provides a payments platform that integrates credit cards, digital wallets, open banking, and buy-now-pay-later options into a single optimised checkout experience.

Its platform routes transactions to strike a balance between cost efficiency and conversion improvements, while automating reconciliation through connections to business software, such as Xero.

Serving clients including Tile Giant, MP Moran, French Bedroom, Mole Valley Farmers, and Fireaway Pizza, Rvvup has scaled quickly to approximately £5 million in annual revenue with a staff of about 45. The company’s capabilities and customer base align with Zopa’s aim to triple its embedded finance business within the next two years.

What’s next for Zopa?

This deal marks Zopa’s second acquisition, following its undisclosed purchase of DivideBuy in February 2023, which was predicted to increase revenue by at least 20%. Zopa currently has 1.4 million customers and recently doubled its pre-tax profit to £34.2 million in 2024, maintaining its unicorn status with over £880 million in total funding.

Zopa recently launched its current account and plans to grow its user base to 5 million by 2028, competing with digital banks such as Monzo and Starling.