Zepz, the owner of remittance brands WorldRemit and Sendwave, has acquired Pomelo, a credit card product designed around money transfers.
The deal adds a card and credit product to Zepz's portfolio as the group expands beyond remittances. Pomelo's team will join Zepz, which said it plans to integrate the product into its roadmap.
Pomelo is a San Francisco-based fintech with operations and market focus in the Philippines. Zepz described the Philippines as one of its core markets.
Product focus
Pomelo positions its offering as a credit card built for money transfer. The company says the product removes cash advance fees and cash advance APR. It also says customers can use the card to send remittances at low cost.
The product also links credit building to remittance payments. Pomelo says customers can earn points on purchases and transfers made with the Pomelo Mastercard.
Zepz framed the acquisition as a move into credit services for cross-border communities. The company said customers in these communities often lack access to everyday payment tools and credit products, including options that allow borrowers to build a credit profile.
Integration plans
Zepz said Pomelo's product has been temporarily paused for customers while the group integrates it into its product roadmap. The company did not give a timeframe for resuming availability.
The group also did not disclose financial terms of the acquisition.
Zepz said it will continue building beyond money movement and pointed to existing work on Sendwave Wallet. The wallet product sits alongside the group's remittance brands.
Market strategy
Zepz said the deal strengthens its position in the Philippines. The country represents a large remittance market, with a significant diaspora sending money home, and it has become a focal point for digital remittance providers and consumer finance products.
The company said the combination of Pomelo's product with Zepz's platform would broaden its revenue mix beyond money movement. It also linked the move to deeper customer engagement and higher retention.
Zepz said Pomelo's team would continue building the product within the group. It described the team as having experience in credit services.
Mark Lenhard, Chief Executive Officer, Zepz, said: "Acquiring Pomelo is a natural next step in our evolution beyond remittances," said Mark Lenhard, CEO of Zepz." It will allow us to offer customers access to cards and credit services, and supports our broader ambition of financial empowerment for cross-border communities. Pomelo is a strong product built by a fantastic team, and we're looking forward to extending these capabilities together over the long term."
Pomelo described the deal as the next phase for its product and mission.
"This is an exciting next chapter for Pomelo, and our mission to help people build their financial future doing what matters most - helping families."said Eric Velasquez Frenkiel - CEO at Pomelo. "Zepz shares our focus on serving cross-border communities and has tremendous potential to accelerate access to credit and everyday financial tools for people who have historically been underserved."
Zepz said it serves more than 9 million customers across 2,000 corridors in over 130 countries through WorldRemit and Sendwave. The group said it plans further product expansion in cards, lending and credit as it develops its wider offering for cross-border communities.