ASX fintechs: Zip is still climbing the revenue ladder while MoneyMe clears the $1bn-loan barrier
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Zip Co (ASX:Z1P), the second-largest player in the ASX cohort of BNPL companies, flagged another round of record-high quarterly results this morning.
The Zip trading update showed transaction volumes on the platform came in at $1.9bn.
Zip said that was double the amount of turnover achieved in the September quarter for 2020.
It was around 5.6% higher than the June quarter result, when Zip booked $1.8bn of gross transaction volumes.
Transactions on the platform flowed through to quarterly revenues of $136.8m — a gain of 5.3% from the June quarter ($129.9m).
Shares in Zip edged higher in morning trade to around $7 — up from September lows of ~$6.20 following a volatile month of trading in October.
Elsewhere in Zip’s data wrap, the company said customer numbers rose to 8m in Q3 2021, up from 7.3m in Q2.
Zip managing director Larry Diamond said the key development in Q3 was the execution of the company’s global rebrand, to coordinate all of its subsidiaries underneath the same branded umbrella.
Z1P’s US acquisition, QuadPay, which it acquired for $118m in a share-based deal in June last year, has now been formally merged into the Zip brand.
In turn, Diamond said the company is now running a “major brand campaign” across the US, which included payment for electronic billboard advertising in Times Square.
Sector leader Afterpay (ASX:APT) is back trading above $120, near the initial ~$126 valuation implied by the all-share takeover bid from Jack Dorsey’s Nasdaq-listed Square Inc.
Earlier this month, fellow BNPL player OpenPay (ASX:OPY) landed a US$271.4m funding deal as it too pursues growth ambitions in the US market.
There were two other notable ASX fintech trading updates this morning, starting with fintech lender MoneyMe (ASX:MME).
MME shares jumped by around 10% after the company announced it has now passed the $1bn mark in new loan originations, with another record quarter in the three months to September ($173m in new originations).
The company said ongoing loan growth flowed through to record revenues of $23m in Q3, up from $19m in the June quarter.
MME managing director Clayton Howes said the company is executing on a strategy to build loan growth while maintaining credit quality, while also driving increased margin growth through the ongoing expansion of its warehouse funding facility.
Shares in enterprise payroll software company PayGroup (ASX:PYG) rose by around 4% after the company released a trading update of its own.
PYG issued a revenue upgrade for its financial year-ended March 2022, flagging full-year revenue of “at least $37m” as a result of “increasing demand for PayGroup’s core payroll solutions”.
For the half-year ended September 30, PayGroup booked $9.6m of new contracts, a gain of 78% on the prior corresponding period, the company said.
“All new contracts signed are for three years with automatic renewals,” PYG said.
PayGroup founder Mark Samlal said the company is reaping the benefit from its investment in an expanded sales team, with a pipeline of potential work “now 5x bigger than this time last year”.
“We remain focused on scaling our core payroll business, which provides a large and growing number of end users to drive ongoing monetisation opportunities,” Samlal said.