Tech
Zip Co (ASX:ZIP) is a buy now, pay later (BNPL) financial technology company that was founded in 2013. Zip Co boasts nearly 2 million Australian users, which is approximately 30 per cent of the total market.
Unlike its nearest competitors, Zip Co doesn’t break purchases into four or six instalments, instead consolidating account balances into a single ‘wallet’ and charging a minimum monthly repayment on the total.
Showing resilience amidst the early impact of covid-19, Zip Co highlighted a spate of new partnership agreements and cost-cutting measures which included reducing its full-time workforce by 20 per cent. As a result, the number of transactions from Zip Co actually grew in early April 2020, with the company stating that their monthly revenue was up 86 per cent in comparison to the same period from the previous year.
The company announced the launch of its Zip Business platform in August 2020, giving small and medium-sized enterprise (SME) clients a new pathway to access working capital via a similar BNPL model. It combined the launch with a new distribution partnership with eBay, where the new service will be rolled out to merchants across the eBay marketplace. As part of the deal, Zip Co said it would provide eBay merchants with “access to flexible lines of credit” to help cover short-term expenses such as inventory costs and marketing.
In October 2020, Zip Co announced a partnership with Visa, allowing customers to use their service with any retailer (physical store or online) where Visa is accepted. The service will operate with a virtual card which can also be added to Apple and Google wallets.
RELATED STOCKHEAD STORIES
News
Closing Bell: ASX has its best day of the year, but not enough to avoid 3pc dip in September
News
Here are the top ASX large cap movers for Wednesday
News
Here are the top ASX large cap movers for Monday
News
ASX Meme Stocks: Just how have they turned out for investors who took the plunge?
News
Here are the top ASX large cap movers for Wednesday
News
Zip reckons India could be a big BNPL market and it just invested in a local operator
Tech
As the BNPL segment heats up, here’s the $50 trillion segment that’s been overlooked
Tech
Room for one more? CBA launches new BNPL platform as competition intensifies
Explainers
ASX BNPL stocks guide 2021: Here’s everything you need to know
News
Short and Caught: It appears investors are responding to takeover bids… by shorting the targets’ rivals
Experts
Opentrader’s Kieran Neeson: Some thoughts on APT-Square and ASX stock picks for the back end of 2021
News
Here are the top ASX large cap movers for Tuesday
Tech
Score check: ASX BNPL sector gets in the Afterpay slipstream
News
Closing Bell: ASX 200 up 10 months in a row, but tide turns against BNPL stocks
News
Banks, BNPLs and fintechs battle out a three-way turf war over multibillion dollar markets
News
Closing Bell: Three-day winning streak means ASX 200 finishes higher this week
News