Zip co-founder Larry Diamond will return to Australia in July after two years in the United States, where he has led the turnaround of the buy now, pay later player to put it on a more solid financial footing to attack large credit card balances held by US banks.

Mr Diamond, 42, will become US chairman of Zip, remain an executive director on the Zip board and continue to work with the executive team led by CEO Cynthia Scott.