LIKE A ROCKET
REVENUE SURGES IN ‘BUY NOW, PAY LATER’ SECTOR
This is another outstanding set of numbers Peter Gray
THE buy-now-pay-later boom is rolling on after Zip Co logged another massive boost to revenue and Splitit inked a deal with one of China’s largest payment solutions companies.
Strong revenue growth at Zip was driven by booming business from the firm’s US business Quadpay, which it bought last year. Zip recorded 80 per cent revenue growth to $114.4m for the March quarter while transaction volume climbed 114 per cent to $1.6bn, compared to the same time last year.
Zip co-founder Peter Gray described the result as “another outstanding set of numbers”.
The update was welcomed by the market, with Zip’s shares the best performer on
the ASX 200, surging almost 17 per cent to $9.73.
Rival buy-now-pay-later players also rallied with market leader Afterpay climbing 3.1 per cent to $124.98 and Splitit jumping 8.3 per cent to 84.5c.
Zip saw record transaction number growth, up 195 per cent for the quarter to
12.4 million on top of an 88 per cent increase in customer numbers to 6.4m.
Bad debts for the lender were helped by Australian economic support, falling from 1.93 per cent to 1.78 per cent. Zip signed up big name retailers such as JB Hi-Fi and Adore Beauty, helping to lift merchants on the platform to 45,300, up 81 per cent for the quarter.
Splitit on Tuesday announced it had inked a deal with Chinese payments giant UnionPay International. The deal will integrate Splitit into Union Pay International and give card holders the option to accept and make purchases using Splitit’s interest-free instalment payment options.
The deal is set to roll out from June in what may see the buy-now-pay-later provider gain access to 180 countries and 55 million merchants, however Splitit stressed the materiality of the agreement was still unknown.