Citadele Bank (Lithuania)

Citadele Launches Partnership With Estonian Fintech Company ESTO

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Citadele Bank has issued a loan of €4 million to ESTO AS, a financial technology company which is seen as one of the pioneers of Buy Now, Pay Later in the region and is currently expanding its operations throughout the Baltics.

The €4 million will be used to develop the company’s range of digital tools with the aim of improving the online shopping experience for users. The financing will also be used for current assets, which will strengthen the company’s operations in Estonia and further its expansion in the Baltic market.

ESTO offers e-commerce and digital payment tools to companies in the Baltics, which allow consumers to order goods online and pay by one of several methods. In addition to traditional bank card payments, they offer the option of splitting the payment into parts, as well as spreading the payment over up to 48 months.

“We offer Buy Now, Pay Later services which are being used by more than 1,000 retailers in Estonia. In the near future, we aim to expand our network of retailers to 3,000 across Latvia, Lithuania and Estonia. Customers who use the Pay Later scheme are most likely to be purchasing electronics, furniture, and products for house and garden work, and the average purchase sum is around €500,” reveals Mikk Metsa, ESTO Group CEO.

“As e-commerce grows in volume and consumer wishes increase, businesses who quickly put in place expanded and seamless payment options will operate and develop more powerfully. Buy Now, Pay Later is expanding quickly worldwide, and it is also becoming popular here in the Baltics. Our aim is not just to develop convenient digital financial tools ourselves, but also to promote innovative financial services in the Baltics, because at the end of the day, the real winners are the public: both shoppers and retailers,” explains Vaidas Žagūnis, Member of the Management Board, Chief Corporate Commercial Officer at Citadele.

“Overseas, tones and trends are set by the leading e-commerce players like Amazon, Zalando and others, who dominate on a global level. However, in the Baltics, we see that e-commerce includes a wider range of niche product and service providers who are willing to sell one type of product and work with their customer base. Our platform gives them the opportunity to successfully communicate and offer different payment options to customers throughout the Baltics and beyond,” adds Metsa.

About Citadele Bank

Citadele’s mission is to modernise the banking sector and offer more opportunities to clients and businesses throughout the Baltics. 

Alongside classic banking services, Citadele offers its clients a range of services based on next-generation financial technology, including its modern app, contactless payments and instant payments, and finally, being the first in the Baltics to introduce opening an account with a selfie, payment rings and payments to mobile numbers.

Citadele is the second largest bank in Latvia by assets. The Citadele group is managed from Latvia. Its subsidiaries and branches operate in Latvia, Lithuania and Estonia.

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