Australian buy now, pay later (BNPL) industry leader Larry Diamond is moving to the US to spearhead Zip’s next phase of growth.

Zip Co (ASX:ZIP) co-founder and global CEO Larry Diamond is headed to the US as Australia’s largest BNPL company looks to accelerate growth in one of its core markets.

Since integrating the US BNPL player formerly known as Quadpay back in 2019, Zip has consistently stated its intent to materially scale the business, with the US being one of the largest consumer market segments in the world. Diamond’s move to the US signals the execution of the Company’s strategy to drive profitability in its core markets.

 

Enormous opportunity

With BNPL accounting for just two per cent of the roughly $5 trillion retail sector in the US, Diamond believes the growth opportunity stateside for Zip is exponentially bigger than Australia.

“We see a huge opportunity in the US. We haven’t even scratched the surface in terms of market penetration. The category is in its infancy with merchants and customers only just starting to discover the benefits of Buy Now Pay Later,” he said.

“It reminds me of our early days in Australia. We worked hard, learned fast, and continually iterated to keep our customers at the heart of everything we did. I’m excited to bring these learnings to support our US team.”

Zip has established partnerships with household names in the states like Best Buy, Bed Bath & Beyond and Chevron. Diamond said the Zip proposition resonates with merchants and their customers in the US.

“We also know that in times of inflation and recession, the demand for our product is more important than ever,” he said.

“Being able to offer customers a fairer, simpler way to pay and manage their money is core to our purpose.”

 

Profitable ANZ

Diamond told Stockhead Zip had been considering the need for his move for some time as part of the company’s plan to refocus attention on its core markets of the US, Australia and New Zealand.

“The timing is right,” he said.

“We are now at a point where ANZ is profitable and under excellent stewardship with financial services veteran Cynthia Scott at the helm supported by co-founder and Global COO Peter Gray.”

The ANZ business has been cash flow positive for four years with a record profit recorded in FY22. Zip signed 400,000 net new customers during the period growing its  base to 3.2 million.

It’s also signed huge enterprise merchants JB Hi-Fi, eBay, Qantas and Virgin Australia.

Diamond will retain oversight of the ANZ business with his global CEO role along with Board and Executive responsibilities.

Zip’s first quarter announcement is expected this month and the AGM is scheduled for the first week of November

 

This article was developed in collaboration with Zip Co, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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