Australian Buy Now Pay Later company Zip has seen strong growth across all metrics — revenues, transaction volume, customers and merchants — compared to this time last year, bolstered by its expansion into global markets as well as strong growth in the BNPL sector.
Last August, the company acquired US BNPL player QuadPay — an investment which has seen the company’s revenues in that region rise 243 per cent on nearly tripled transaction volume. The 153 per cent increase in customers in the US means that the company now boasts more USA customers (3.8 million) that in its home region of Australia and New Zealand (2.6 million) — though there are still more merchants signed into the system at home than abroad.
In the ANZ region, Zip generated $57.9 million in revenue on $837.3 million worth of transactions during the most recent quarter — significant increases on the year-ago quarter. However, even that strong growth is only a part of the company’s plan for expansion.
The company also launched into the UK in late 2020, and is in the process of expanding its operations into Canada, The Philippines and Eastern Europe. It is expanding both by launching its own global platform and by targeted investments in existing local players. The company believes that consumer aversion to traditional credit cards is “a global phenomenon” driving rapid adoption of BNPL.
According to Managing Director and CEO Larry Diamond, “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.” The company’s presence in multiple international markets, he believes, makes Zip “a truly global BNPL leader”.
“Even though we are seven years in,” he said in a statement, “global BNPL adoption remains in its infancy — there is approximately $US22 trillion in total addressable market volume with BNPL penetration of global ecommerce spend only 1.6 per cent.”
Globally, Zip says it handled $1.6 billion in transaction volume, generating $112.3 million in revenue during the quarter.