British payments group Zilch has struck a deal to buy Lithuania-based Fjord Bank, using the acquisition as a gateway to broader expansion across Europe, the company said in a press release on its website on January 7.

Zilch said the takeover would secure it a European banking licence and significantly speed up its continental growth plans. The firm also intends to locate its European headquarters in Lithuania.

The company confirmed it has agreed to purchase 100% of the shares in Fjord Bank, a Norwegian-owned specialist lender holding assets of around €103mn. The value of the transaction has not been disclosed.

“By combining Fjord’s banking expertise and regulatory structure with Zilch’s data, AI and operating model, we will be able to scale next-generation consumer finance solutions across Europe, just as we have done in the United Kingdom,” said Zilch co-founder and chief executive Philip Belamant.

Fjord Bank chief executive Veiko Kandla said the move would help fast-track expansion, widen the bank’s range of products and open access to a much larger customer base.

Completion of the deal is expected in the second half of 2026, pending regulatory clearance.

Fjord Bank was granted a specialised banking licence in Lithuania in December 2019 and began offering consumer lending and savings products in 2021. Alongside its Lithuanian operations, the bank is active in Estonia, the Netherlands, Germany, Spain and Ireland.

Zilch said it has raised more than €150mn in debt and equity over the past year, lifted annual revenues beyond €17mn, secured a second payments licence from the UK Financial Conduct Authority, rolled out its AI-driven Zilch Intelligent Commerce product and grown its user base to more than 5.5 million registered customers.