How Payix Is Expected To Raise Repay’s Game in the Hot Buy Now, Pay Later Arena

The acquisition of independent sales organization Payix is expected to bolster payments provider Repay Holdings Corp.’s ability to acquire new merchants, including in the fast-growing and wildly popular buy now, pay later space. Repay on Monday announced its $115-million deal for Payix, which is a registered independent sales organization of Wells Fargo Bank, N.A. and Deutsche Bank AG.

Payix’s strength lies in its ability to communicate with borrowers and develop effective collections strategies, Robert Napoli, co-group head, financial services and technology at William Blair, writes in a research note.

“By creating access to engaging and easy-to-use borrower-facing digital tools, [Payix’s] team is helping today’s lenders and loan servicers set themselves up for the highest level of success,” Napoli says in the research note. “Payix’s powerful lender-branded product suite comes from a deep understanding of lending and payment processing and supports a wide range of payment options, seamlessly integrating into other management systems.”

Another strength of Payix is that the company has a “strong sales-distribution pipeline model and deep software integrations that are complementary to Repay and should support new merchant acquisition,” Napoli says.

While Payix is primarily known for its loan-repayment tools in the automotive space, which are expected to enhance Repay’s position in auto lending, those tools will be just as applicable in the high-growth BNPL business, Napoli adds. 

Founded in 2016, Payix is a payments-platform provider that facilitates payments, data exchange, and communication to support customer service and collections for loan repayment.

“Prior to the Payix acquisition, Repay provided its payment and technology solutions to a wide variety of lenders, including but not limited to, automotive, mortgage, personal, and BNPL lending clients,” Jake Moore, executive vice president of corporate development and strategy for Repay, says by email. “The Payix acquisition expands Repay’s existing foothold in the BNPL space, as Payix counts several BNPL lenders in its clients base.”