Alliance Data Inks $450M Deal For FinTech Bread

Alliance Data Systems is the latest big player to jump on the buy now, pay later (BNPL) consumer finance trend.

Alliance, which provides co-branded and private-label credit cards, announced on Thursday (Oct. 29) that it will acquire Bread and its digital payments platform for $450 million, including $100 million of the company’s common stock.

Through the deal, Alliance said its brand partners will have the option of offering installment payment options.

Columbus, Ohio-based Alliance expects the deal to close in the fourth quarter, at which time it will bring on board New York-based Bread’s 185 employees and the firm’s portfolio of more than 400 retail clients.

“As part of our broader transformation efforts, the acquisition of Bread significantly expands our digital capabilities and payment options for our brand partners and their customers, while providing another reason for retailers and brands to choose Alliance Data to help them grow their businesses,” said Ralph Andretta, president and chief executive officer, Alliance Data, in a press release. “Bread’s pay-over-time solutions, together with our robust existing private label, general-purpose and commercial products, will further expand our breadth of payment options and capabilities.”

Alliance noted that the acquisition of Bread and the addition of its payment solutions will also complement its own Enhanced Digital Suite while bolstering its appeal to “younger, digitally native consumers.”

In an interview with Karen Webster, Bread CEO Josh Abramowitz discussed in detail the FinTech’s business strategy and the appeal of alternative payment methods among millennials, including BNPL installment plans.

The occasion for the interview, which took place last year, was the launch of Bread Edge, which the FinTech has described as the only full-funnel payment personalization engine on the market.

“We look forward to helping an industry leader like Alliance Data grow its business by offering enhanced solutions for its clients and their customers,” Abramowitz said in a press release on the acquisition of Bread by Alliance Data.