- Buy now, pay later player Zip Co (Z1P) has wrapped a record-breaking first half of the 2021 financial year
- The company recorded a record revenue of $160 million, which is up 130 per cent from this time last year
- Zip also saw a record in transaction volume (TTV) of $2.3 billion, up 141 per cent from 2019’s result
- Over the period, the company completed its purchase of U.S. BNPL company, Quadpay, which since then has grown its TTV to over 130 per cent
- The ASX-200-lister is scheduled for an upcoming soft launch in the Canadian market and is currently in the pilot stage
- On the market this morning, Zip is down 6.24 per cent and is trading at $11.12 per share
Afterpay rival Zip Co (Z1P) has wrapped a record-breaking first half of the 2021 financial year.
The buy now, pay later (BNPL) company reported a record revenue of $160 million, which is up 130 per cent from this time last year.
Zip also saw a record in transaction volume (TTV) of $2.3 billion, up 141 per cent from 2019’s result.
The company’s biggest achievement in the first half was its purchase of Quadpay, a U.S. BNPL player. Notably, over the past four months, the business has grown over 130 per cent in TTV.
“Highlighted by the acquisition of U.S.-based Quadpay, the December half was
transformational and saw the company position itself as a truly global BNPL leader with its footprint across 9 markets,” CEO Larry Diamond said.
“We saw record results across all key drivers with most metrics up 100 per cent year on year and the company now annualising over $7.5 billion in transaction volume at December. The business has strong momentum entering the second half as it expands its business in the U.S. and launches the U.K.,” he added.
Zip now has more than 5.7 million active customers, up 217 per cent year on year, and has more than 38,500 merchants across the United States, Australia and the United Kingdom.
Some of the new merchants included Gamestop, Fanatics, Newegg and Sunglass Hut in the U.S., and Harvey Normen, Domayne and Adore Beauty in Australia.
The ASX-200-lister is now looking to enter the Canadian market. Its platform is currently in pilot and scheduled for a soft launch in Canada in the second half of the financial year.
In what could be a major development for the industry, Australia’s BNPL industry Code of Practice is coming into play next week.
The code will set out minimum standards to ensure the industry is acting in the best interest for Australians.
“Zip has been a key contributor to the code, and we believe it is a strong first step to lifting standards across the industry,” co-founder Peter Gray said.
“We genuinely believe the opportunity for Zip significantly grows each and every day as we continue to execute, build momentum, and accelerate the global shift away from the broken and unfriendly credit card, towards a better, fairer digital alternative,” Larry concluded.
On the market this morning, Zip is down 6.24 per cent and is trading at $11.12 per share at 10:48 am AEDT.