Zip, an Australian BNPL provider, has dropped its merger plans with a US rival.

Zip, an Australian buy-now-pay-later (BNPL) company, has abandoned previously announced merger intentions with US-based rival Sezzle. The announcement comes as the BNPL sector continues to lose investor interest and face increasing regulatory constraints amid challenging market circumstances.
Zip agreed to acquire Sezzle in February for $352.59 million (A$491 million) in order to strengthen its US operations and remain competitive in its most significant market.
The transaction was projected to provide significant synergy benefits that would increase profitability for both organizations. The two corporations agreed to cancel the merger deal because of "current macroeconomic and market conditions", according to a report by Reuters.
Zip, which owns the Quadpay brand in the United States, stated that its decision to withdraw from the merger is in the best interests of the company and its shareholders, and would allow it to focus on its strategy and core business.
Last month, the business announced in a trade update that it was boosting fees and examining worldwide operations outside the US, but that "the purchase of Sezzle is on track".
Sezzle CEO Charlie Youakim stated that the company is still focused on profitability and free cashflow.