SYDNEY: Buy-now-pay-later giant Zip has is entering a deal to sacrifice 23.3 percent of its shares in exchange for ownership of New York-based QuadPay.

Business News Australia says if the deal goes ahead it will see Zip Co’s annual total transaction value lifted by almost A$900 million, representing an increase of around 43 percent for the group.

Zip has agreed to pay QuadPay’s co-founders up to $88 million subject to performance milestones, as well as tenure milestones through the issuance of up to five million shares.

Zip said the US was a critical part of the company’s global strategy as merchants increasingly look for a global payments solution.