Wonga acquires Germany equivalent of PayPal to expand its payment business

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UK-based startup Wonga made an announcement today of its acquisition of Germany online payments service BillPay. Financial details of the transaction were not disclosed, but Wonga had said that the acquisition was in line with the company's growth plans.

Wonga said, "The acquisition significantly accelerates our development into a broad-based, digital finance group and will also speed the development of our PayLater online retail product, together with the company's international expansion."

Wonga had already raised USD145 million from venture capital firms including Accel Partners, Greylock, and Oak Investment Partners.

Wonga is known for its online payday loan services. Its latest annual report last August indicated that the company had issued 4 million loans worth GBP1.2 billion or USD1.94 billion.

Billpay had been dubbed as the equivalent of Paypal in Germany. It had been catering to around 2 million users and had agreements with 3,500 online storefronts. BillPay's annual transaction volume is at EUR300 million or USD409 million.

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