There are four key reasons why LM PAY represents an attractive investment.

1) LM PAY has a strong position in a niche market

The broader consumer loan market in Poland is fragmented, with high competition between banks, credit unions and online lenders. LM PAY differs from traditional consumer loan businesses in that it operates in a specialised niche market with limited direct competition. The company’s first-mover advantage lies in its direct relationships with owners of beauty and medical

2) The company has several ambitious growth projects in progress

In June 2025, LM PAY launched CUK Flex Pay in partnership with one of Poland’s largest insurance multi-agencies with more than 3,000 agents, and is targeting partnerships with other insurance brokers and companies. The product allows for convenient and safe financing of third-party liability and comprehensive (AC) car insurance premiums. The company is also exploring alternative payment methods and has recently launched a mobile app with a virtual card in cooperation with Visa. This provides a convenient way to finance medical and aesthetic treatments across a wide, pre-determined list of facilities. While LM PAY’s management believes the company has significant room to grow in Poland for at least the next three to four years, it is making organic forays into other countries in the region. In 2025, it plans to enter Romania, a market it considers similar to Poland, characterised by strong growth of credit markets and good private credit scores.

3) LM PAY benefits from high demand for consumer loans and an inefficient public healthcare system in Poland

Consumer loans provided by non-bank lenders in Poland grew by 29% y-o-y in the first half of 2025, supported by high wage growth and low unemployment amid strong GDP growth. Further macroeconomic factors supporting the market in the near term include continued disinflation, additional central bank rate cuts and stabilising property prices. Robust private consumption and rising beauty and health awareness are coupled with an inefficient universal public healthcare system in Poland, resulting in a high share of private healthcare spending. Moreover, beauty treatments and aesthetic medicine, as well as veterinary care, are gaining importance in the Polish society. An important driver of LM PAY’s lending business in the beauty industry is not only the recurring nature of beauty procedures but also upsell opportunities pursued by beauty salons through the provision of more comprehensive procedures and bundling multiple treatments into attractive packages.

4) New financing agreement and proceeds from loan repayment can unlock further growth

On 11 July 2025, LM PAY signed a term sheet with an entity from the UniCredit Group and expects the new financing to be available from September 2025. This will lower LM PAY’s funding costs and provide further benefits in lending terms. Furthermore, LM PAY’s parent company intends to repay a large loan it received from LM PAY in the coming years. Recycling the proceeds into LM PAY’s lending business should drive a substantial increase in net profitability and equity, and in turn provide headroom in terms of its equity ratio.

Published 1 September 2025