Fintech: Zip Co just hooked up with Kmart; shares jump again
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Fintech payments platform Zip Co (ASX: Z1P) has added Kmart to its list of national retail partners.
The buy now, pay later platform will offer interest-free repayment terms to all customers across Kmart’s national network of more than 200 stores.
News of the deal saw shares in Zip Co rise another six per cent in morning trade. The company’s stock price has risen by around 400 per cent in 2019.
Zip Co’s interest-free deal with Kmart marks a slight change to the company’s core business model, which offers interest-free terms to customers on purchases up to $1,000.
It’s the second deal Zip Co has struck with a major retail chain owned by the Wesfarmers conglomerate, after it reached a similar agreement with Target in September last year.
Along with competitor Afterpay (ASX: APT), Zip Co is working to expand its network of retail partners as it seeks to grow its merchant-based revenue model.
The company reported revenue of $23 million in the March quarter as customer numbers rose to 1.2 million.
“The relationship with Kmart continues to deliver on Zip’s strategic vision of partnering with Australia’s largest retailers, providing consumers with choice whilst expanding the network of acceptance for Zip’s growing customer base,” the company said.