Buy Now, Pay Later (BNPL) provider Zip, which is based in Australia, last Tuesday, February 25, reported that demand from consumers and merchants dropped its growth in the last half of the past year.
The upward dynamic of the mentioned company’s business has been particularly intense in the United States. In this country, the firm has sought to serve consumers who cannot access traditional lending and who use BNPL due to its flexibility, transparency, and ability to manage cash. The relevant information is contained in the presentation prepared by the company for investors in conjunction with the earnings call.
Zip Group chief executive officer and managing director Cynthia Scott stated that the firm’s clients are everyday Americans, a group of more than 100 million people who have difficulty accessing traditional credits or take higher costs to get them. The corresponding statement was made during the earnings call.
Cynthia Scott also noted that the company has added new merchants who see the advantages of Zip accessibility for their customers.
The data, which was published on Tuesday, indicates that the firm’s total transaction value for the second half of last year showed an increase of 23.9% compared to the figure recorded for the same period in 2023. The number of active customers of the company reached 6.3 million in the six months ended December 31. This indicator showed an increase of 1.5% year-on-year. The number of merchants on the company’s platforms reached about 81,900 in the second half of 2024. This indicator grew by 7.6% year-on-year.
Zip currently provides its services to consumers residing in the United States, Australia, and New Zealand. The company’s total transaction value in Australia and New Zealand increased by 0.4% year-on-year in the second half of 2024. Zip has returned to an upward trajectory. The corresponding dynamic of the company’s business became a reality after the firm focused on increasing the margin indicator. In the United States, Zip’s total transaction value leaped 40.3% year-on-year in the second half of 2024. The company noted that the corresponding result was achieved due to exceptional holiday activity and deeper customer engagement. This information is contained in the earnings release, which Zip published on Tuesday.
To ensure the continuation of the mentioned upward process, the company introduced new products that allow customers to finance larger purchases.
In Australia and New Zealand, the firm has expanded Zip Plus to new customers. Last month, the company launched a Zip Personal Loan. According to information posted on the firm’s website, Zip Plus allows customers to spend up to $8,000 wherever Visa cards are accepted. The company has recorded that clients of the mentioned solution transact 42% more often than Zip Pay customers. Zip Pay is a product of the firm for everyday use. As part of this solution, clients can spend up to $1,000.
In the United States, Zip has expanded its Pay-in-8 installation solution to all eligible customers in the app. The company stated that this product facilitates higher-value purchases. This is part of the Pay-in-Z platform, which will be launched in fiscal year 2026 and will enable the firm to offer consumers additional personalized and flexible payment solutions. With this solution and Pay-in-4, clients will be able to split their purchases into four or eight installments and pay every two weeks. The relevant information was published on the company’s website.
Cynthia Scott stated that the attractiveness of the mentioned product for the firm’s customers lies in the fact that it can be used anywhere, in as many settings for as many financial needs as possible. She also noted that consumers leverage the company’s products for both everyday and more considered spending.
As we have reported earlier, Cornerstone Financial Credit Union Adds Flexibility to Online Banking With BNPL Offering.
