Peer-to-peer resale platform Vinted is making waves in the industry with its impressive profitability and growth. In 2024, the company reported a staggering 330% increase in net profits, reaching €76.7 million. To further capitalize on its success, Vinted is rolling out a new feature called Vinted Pay.
Vinted Pay is an in-house wallet and payout service designed to offer a more seamless, secure, and user-friendly payment experience for its members. By bringing payment processing in-house, Vinted aims to reduce costs and improve efficiency. The company is currently testing the service with a select group of members in Lithuania, Finland, Greece, Slovakia, and Croatia.
While the resale business is known for its low margins and operational challenges, the payments industry boasts high margins, high volume, and infinite scalability. Companies like Stripe, Block, and Adyen have thrived in the payments space with gross margins ranging from 60% to 90%. By expanding into payments, Vinted aims to tap into this lucrative market and drive further growth.
Speaking at the Web Summit conference in Lisbon, Vinted senior brand director Andrew Smith emphasized the company’s vision of becoming a dominant player in the secondhand market worldwide. Smith highlighted the importance of achieving economies of scale and establishing network effects to make secondhand the first choice for consumers globally.
As Vinted prepares to enter the US market, it has launched a pilot program to gauge customer interest. The company is testing a cross-border connection between buyers and sellers in London and New York, signaling its expansion plans. Vinted’s decision to waive seller fees has been a key factor in its success, attracting both buyers and sellers to the platform.
In conclusion, Vinted’s introduction of Vinted Pay and its strategic expansion into the US market demonstrate the company’s commitment to innovation and growth. By leveraging its profitable position and focusing on user experience, Vinted is poised to become a dominant player in the global resale industry.
