U.K.-based GoHenry, financial education and pre-paid debit card service provider designed mainly for children, has reportedly diversified into Europe with the acquisition of French startup Pixpay.
For those unaware, GoHenry was established in London in 2012 and has since surfaced as one of the prominent fintech firms for young kids, offering an online interface that enables families to allot and oversee funds while their children are taught how to cut back on expenses and gather perspective into their spending patterns.
Meanwhile, Pixpay has officially formed only about three years ago and has a similar premise to GoHenry, but with a greater emphasis on tad older kids over the ages of ten. While GoHenry insists on having more than two million users in London and U.S. markets, PixPay claims to have a membership base of nearly 200,000 across France and Spain.
For GoHenry, it was slightly more difficult to enter the kids' finance space as it had to start from the ground up in the United States. Still, there are many benefits to purchasing an established reputation with traction like Pixpay, perhaps the most important of which is that GoHenry doesn't have to worry as much about employing or localization.
Meanwhile, the UK-based firm also stated that it has no intentions to merge the two companies and that their respective brand names, top management, and head offices will remain untouched.
According to CEO Alex Zivoder, the acquisition of Pixpay, a proven leader in youth banking in France & Spain and a credible brand to promote rapid expansion across Europe, this acquisition was deemed appropriate as it would furnish comparative benefit to the company and solidify its global foothold.
With Pixpay focusing solely on the finances of teenagers and GoHenry trying to appeal to children as young as six years old, this arrangement will be holistically beneficial to the customers. It is worth noting that GoHenry marked remarkable revenue for its business in 2021, doubling its earnings to USD 42 million primarily driven by the Coronavirus outbreak.
Source credits –