Login
ISCOVER
The business lending division of buy now, pay later provider Zip Co saw a dip in transaction volumes during the September quarter, as customers fell under COVID restrictions.
Zip Co released a quarterly update for the three months to 30 September, revealing it had generated $138.8 million in group revenue (89 per cent more year-on-year).
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Zip Business, which offers point-of-sale credit, digital payment and lending services, contributed $3.8 million in revenue, 58 per cent more year-on-year and 19 per cent more from the previous quarter.
Transaction volumes for the segment had surged from the year before, up by 194 per cent to $33.8 million for the first quarter of the 2022 financial year.
However, the volume had fallen by 13 per cent from the previous quarter, with Zip reporting small-business confidence had been squeezed by lockdowns across NSW, Victoria and New Zealand.
There had however been an explosion in business customers that sat at a total of 9,700 – 17 per cent higher than the previous quarter and 782 per cent more year-on-year.
Zip Business also saw B2B merchants such as Tradelink, Holcim Cement and Paramount Liquor join the Zip payments platform.
The division has plans to roll out single-use virtual card technology in the December quarter, allowing business customers to use a digital card to transact anywhere online and to pay in instalments.
Trade Plus, Zip’s buy now, pay later (BNPL) offering for businesses, had launched a tap-to-pay feature for its customers during the September quarter, with the company reporting it drove more frequent usage. Active users tapped more than seven times per month.
Zip Business also reported that it has facilities totalling $146.2 million (with $41 million drawn) across Australia and New Zealand for its SME BNPL products (Trade, Trade Plus) and lending arm Zip Business Capital.
During the September quarter, Zip Co had also completed a global rebrand across six countries, which included changing its name to Zip in the US, from Quadpay.
Reflecting on the results, Zip managing director and global chief executive Larry Diamond commented: “The continued growth of the business across all key metrics in the face of significant external challenges, yet again proves the resilience of the Zip business, and demonstrates the significant size and early stage of the global BNPL opportunity.”
[Related: SME lender joins Lend partner panel]
JOIN THE DISCUSSION