Ikea’s parent company, Ingka Group, has purchased a $22.5 million stake in Buy Now, Pay Later (BNPL) company Jifiti.

The Israeli FinTech provides point of sale (POS) financing solutions for banks, lenders, and merchants.

Ikea, in conjunction with local partners in Spain, France, Portugal, and Belgium, has been offering BNPL options via the Jifiti platform since 2019.

Jifiti said it will use the capital for technology and product development and to expand internationally into new markets.

Jifiti said it will remain bank, card network, and retailer agnostic, and will retain full independence and control over its operations.

In addition, Jifiti said will collaborate with Ikea to extend its financial services to its 706 million annual in-store customers and 3.6 billion e-commerce visitors globally.

The news comes after Ikea launched finance services in the UK in May, providing an interest free financing option for purchases between £99 and £15,000.

"Ingka Group is taking decisive steps into financial services, and a core part of our journey is to help make Ikea more affordable and accessible for our customers,” said Krister Mattsson, managing director at Ingka Investments. “This deal will further our integration of easily accessible financing solutions into the Ikea offering."

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