Zip Co aims for bumper Xmas as revenue surges
Buy now, pay later operator Zip Co is counting on the crucial Christmas spending season to deliver a further boost to its in-store volumes.
Buy now, pay later operator Zip Co is counting on the crucial Christmas spending season to deliver a further boost to its in-store volumes, as it recorded a surge in revenue over the first four months of the year on record transactions across its Australian and US businesses.
Revenue rocketed 91 per cent to $96.7m between July and the end of October, with two-thirds of the sales coming from its Australian and New Zealand operations. The US business, accounting for the final third, recorded a revenue jump of 345 per cent over the same period.
Revenue in October alone hit $27.6m on $401.1m worth of transactions, Zip said. Transaction volumes jumped 104 per cent over the month and November was shaping up to be another strong result, Zip chief executive Larry Diamond told shareholders.
“We are pleased to report yet another record month for the company across all its key metrics, as we accelerate into the final quarter of the calendar year,” Mr Diamond said.
“While online trade is expected to be very strong this year, and Zip will enjoy its share, this season Zip expects to significantly lift its instore volumes.”
The US was Zip’s biggest growth driver over the first four months of the year, with the region seeing 15,000 downloads of its app per day. Mr Diamond indicated that the company expected to lift its in-store volumes through its partnerships.
“Our partnership with Visa and access to Apple Pay and Google Pay wallets unlocks everyday spend, providing our customers with more utility and choice,” he said.
Customer numbers jumped to 4.8 million at the end of October, while 36,500 merchants were registered on the platform.
Separately, fellow BNPL platform Laybuy on Monday reported its first-half numbers for the six months to the end of September, with revenue surging 151 per cent to $NZ13.3m, mainly due to growth in the UK.
Laybuy would be testing the US market pre-Christmas with a view to a progressive launch in the New Year, the company said.
Zip Co shares lifted 0.3 per cent to $6.20 on Monday, while Laybuy fell 1.8 per cent to $1.36.
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