Cashing in on the busy retail season, buy-now-pay-later company Zip Co (ASX: Z1P) set a new quarterly record as Australians use the popular app over the past few months leaving repayments as a matter for future-self.
With interest picking up around their platform, they have signed on 10 million new customers and a total of 81.8k merchants. The Company recorded December quarter revenue of $167.4 million, up 58% YoY which was generated from total transaction volume of $2.6 billion, up 53% YoY.
“Solid growth in the quarter as Zip delivered another very strong set of numbers,” said Managing Director and Global CEO, Larry Diamond.
Zip in the last quarter has signed on merchants including Footlocker, Shein, Nespresso, Virgin Australia, Under Armour and many more.
Continuing their global expansion strategy, Zip have recently completed an acquisition of Twisto, which provides a regional headquarters and passport for European expansion with hopes to set up more merchants and access to the European market.
The remainder of 2022 provides to be promising and optimistic with a sizeable instore opportunity to launch a physical card program. The program is set to scale in Q3 FY22, significantly improving their in-store channel capabilities and addressing the significant BNPL opportunity at a time when the investor community is cooling on the sector.
“Despite external noise and challenges the business continues to deliver and we are very well placed to continue the growth and momentum in 2022,” said Diamond.
Such external noise is likely to include the substantial share price decline of rival Afterpay (ASX: APT) which in August was acquired by US-based fintech giant Block (ASX: SQ2) for $39 billion. At the time of that offer being received, APT shares were trading around $130 each but with cooling across the entire sector, they last traded at $66.47 just three months later on their final day on the ASX before APT shares transitioned into their new ownership under the SQ2 ticker.
Globally, increasing commentary around potential regulation of BNPL as a financial product continues to weigh down the sector.
Trading Desk Assistant at Emerald Financial
Latest posts by Jack Cornips (see all)
- UNITH delivers eSocial Worker for public health services across 14 countries - December 5, 2023
- Novatti cashing out of Reckon investment, clears debt to simplify payments business - November 17, 2023
- Novatti seizes opportunity in Australia’s cashless transition as revenues rise while expenses drop - October 30, 2023
Leave a Comment
You must be logged in to post a comment.