Zip cements itself as a true global BNPL leader
Zip cements its position as one of the fastest growing BNPL players in the US, and as a true global BNPL leader, with over 5.7m customers, annualised TTV of c.$7.5bn+1 and annualised revenue of c$480m1.
Managing Director and CEO Larry Diamond said, “We are extremely pleased to deliver another exceptional set of numbers with the quarter really delivering a significant step change for the Company, confirming our position as one of the fastest growing players in the sector. A number of strategic initiatives were delivered during the quarter, in line with our mission to become the first payment choice everywhere, every day,and we are extremely well placed to continue this momentum into 2021as the global shift away from the broken credit card model continues. Particularly exciting were the results achieved in the US with Quadpay rapidly accelerating in the largest addressable market for BNPL.”
In addition to Australia and QuadPay in the US, Zip officially launched its UK business in December. The UK remains a key strategic focus for the group and will be a strong driver of growth throughout 2021. The quarter saw the team grow to 25, with more than 150 merchants already live and transacting, and numerous enterprise partners including boohoo, JD Sports and Fanatics in the process of going live or completing integration. The UK will be able to leverage Zip’s global channel partnerships including Adyen, Big Commerce, Stripe and Shopify to help it scale in 2021.A key pillar in the strategy for Zip UK will be the utilisation of virtual card technology allowing Zip customers to transact anywhere, online or instore.
Zip Business remains a key strategic growth initiative for the company. The quarter saw the continued roll out of the Zip Business suite of products in Australia with the launch of Zip Trade in December. Zip Trade is a B2B BNPL offering up to $3k for small businesses. This will be closely followed by Zip Trade+, an interest free account up to $150k, which is expected to be launched in Q3 FY21.Zip Trade has seen very strong early adoption and engagement, with customers using the product on average more than 3 times in the first month of release. Other highlights for the quarter included the launch of a partnership with Facebook, enabling Australian SMBs to use Zip Business to purchase ads on the social platform, as well as Zip Business gaining approval for the Australian Government SME Guarantee.
- Based on BNPL Dec 2020 results annualised