- Zip Co (Z1P) has provided a trading update for the December quarter, often doubling its growth year-on-year across a number of key metrics
- The fintech's group revenue for the quarter reached $102 million — up 88 per cent in the year-on-year (YoY) statistics
- Its transaction volume also more than doubled to hit $1.6 billion over the Christmas season
- Zip now services 5.7 million customers, marking a 97 per cent increase in its client base compared to the same time last year
- The ASX lister, which offers point-of-sale credit and digital payment services across five major countries, also saw its U.S. arm deliver record results
- During the quarter, Z1P raised $176.7 million in equity, with the majority of funds allocated to fuel its growth in the U.S. market
- Following the report, Zip Co shares soared 8.36 per cent to trade at $6.48 per share
The latest quarterly trading update from Zip Co (Z1P) shows it is one of the fastest-growing buy now, pay later (BNPL) players in the world.
The update saw Z1P table $102 million in group quarterly revenue, up 88 per cent year-on-year (YoY). The fintech also recorded $40.2 million in buy now, pay later (BNPL) revenue over December — 94 per cent higher than December 2019.
The company's transaction volume also more than doubled to hit $1.6 billion over the Christmas season, while its customer numbers jumped 97 per cent YoY to hit 5.7 million.
In Australia, ZIP processed over $330 million in transaction volume over December and was the most downloaded BNPL app in the country, with 200,000 downloads in that month alone.
Harvey Norman and Facebook also joined the ZIP platform as over 230,000 new accounts opened during the quarter.
Zip Co offers point-of-sale credit and digital payment services across Australia, New Zealand, South Africa, the U.K. and U.S. The fintech enjoyed particular success in the U.S. market over the Christmas season, hitting a number of records during the period.
Zip Co expanded into the United States in June 2020 by acquiring New York-based BNPL QuadPay for $400 million. From October through December, 915,000 customers joined the platform and the app was downloaded 1.8 million times.
Transaction volume for QuadPay in Q2 FY21 increased 217 per cent from the previous year to US$518.4 million (around A$673.1 million), with December transaction volumes exceeding November by 7.5 per cent.
“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 2021 as the global shift away from the broken credit card model continues,” said Managing Director and CEO Larry Diamond.
“Particularly exciting were the results achieved in the U.S. with Quadpay rapidly accelerating in the largest addressable market for BNPL.”
During Q2, the company also raised $176.7 million in equity, with the majority of funds allocated to fuel growth in the U.S. market.
Following the report, Zip Co shares soared 8.36 per cent to trade at $6.48 per share at 10:43 am AEDT.