Dive Brief:

• GoHenry, a U.K.-based neobank offering banking services to children, acquired French fintech Pixpay for an undisclosed amount, the companies announced Monday. 
• GoHenry, which claims to have more than two million customers in the U.S. and U.K., said the acquisition will help accelerate its growth across Europe.
• As a growing number of neobanks compete for young customers, GoHenry’s acquisition of Pixpay, which also targets the Gen Z crowd, is a move in the direction of potential additional industry consolidation.

Dive Insight:

GoHenry and Pixpay will continue to operate under their own brands with no change in leadership, headquarters or headcount, according to a press release. 

“Pixpay is the most developed player in Europe and we’re excited to combine our expertise in financial education to accelerate not only GoHenry’s growth but to accelerate the financial fitness of even more kids and teens globally,” GoHenry CEO Alex Zivoder said in a statement. “This deal marks a significant chapter for the future of financial education.” 

Like GoHenry, Pixpay targets the Gen Z crowd by offering financial services through a mobile banking app that can be accessed and monitored by parents. 

GoHenry, which was founded in 2012, raised $40 million in 2020, the majority of which it allocated for its U.S. expansion, Zivoder told Banking Dive at the time.

The company on Monday said it more than doubled its revenue during the COVID-19 pandemic to $42 million in 2021.

By acquiring Pixpay, GoHenry is linking itself to a fintech with similar growth ambitions. 

Pixpay was founded in 2019 in France by Benoit Grassin, Nicolas Klein and Caroline Ménager, and claims to have nearly 200,000 members. The fintech expanded to Spain in November 2021 and plans to expand into Italy and Germany this year, the company said.

Pixpay raised more than €11 million since April 2019 from the investment fund Global Founders Capital and BPIFrance via its Digital Venture division, according to a press release. 

“We are delighted to be joining the GoHenry Group as we prepare to accelerate Pixpay’s expansion across Europe,” Grassin, Pixpay’s CEO, said in a statement. “GoHenry’s experience and heritage will only serve to strengthen the already strong proposition offered by Pixpay. We look forward to building a strong, long-term relationship with GoHenry and we are excited about what the future holds.”