Zip Co will pay a big break fee to eliminate debt using proceeds from a new equity raising, and has indicated it will push the accelerator on growth in the United States despite regulators investigating whether it has violated consumer protection laws.

With its buy now, pay later payments growing by 43 per cent in the US last quarter, Zip said it would introduce a “Pay in 8” product to allow its almost 4 million American customers to pay for more expensive items such as travel and whitegoods.