Zilch to buy Lithuanian challenger Fjord Bank in bid for European licence
The UK buy now, pay later group says the acquisition will give it a full European banking licence and accelerate its expansion across the continent, with Vilnius set to become its regional base.
Zilch has agreed to acquire AB Fjord Bank, a Lithuania-based lender with around $120 million in total assets, in a move that would secure the UK group a European banking licence and support a faster rollout of its services across Europe.
The buy-now-pay-later unicorn said it will acquire 100% of Fjord Bank, which would allow the company to operate under a fully regulated European banking framework. As part of the deal, Zilch plans to establish Lithuania as its European headquarters, using Vilnius as its operational and regulatory hub for expansion across the region.
Fjord Bank was launched in 2021 and is described as a profitable, fully regulated challenger bank focused on online consumer lending and savings products. Veiko Kandla, chief executive of Fjord Bank, said the transaction marks the next stage in the bank’s development. “We are incredibly proud of what the Fjord team has built over the past five years. Having established the business and successfully scaled it, the time is now right to become part of a bigger mission,” he said. “Joining Zilch provides the perfect opportunity, enabling us to accelerate growth, expand our product set and reach millions more customers without compromising on our consumer-first values.”
For Zilch, the acquisition follows a period of rapid growth and investment. The company said it raised more than $175 million in debt and equity funding over the past year, surpassed $200 million in annual revenue and secured a second payments licence from the UK Financial Conduct Authority. It has also launched its Zilch Intelligent Commerce artificial intelligence product and grown its registered customer base to more than 5.5 million users.
The deal is intended to shift Zilch from operating primarily as a payments and credit platform to holding its own banking licence within the European Union, potentially reducing reliance on partner banks and allowing it to develop a broader range of regulated financial products.
Olav Haugland, chairman of the supervisory board of Fjord Bank, said the priority had been finding an owner capable of supporting the bank’s next phase of growth. “We firmly believe we have found that with Zilch, and its outstanding leadership team, and look forward to seeing the business continue to thrive as part of the group,” he said.
The transaction is expected to complete in the second half of 2026, subject to regulatory approvals.
The Recap
- Zilch to buy AB Fjord Bank in Lithuania.
- Fjord Bank has about $120 million in total assets.
- Transaction expected to complete in the second half of 2026.
