As young shoppers increasingly turn their backs on traditional credit cards in favour of ‘buy now, pay later’ (BNPL) services, one provider has reported huge increases in revenue and transaction numbers.
With customer and retailer numbers joining up to BNPL platform, Zip Co, on the rise, the popular industry giant has reported its highest ever transaction numbers for the March quarter.
Up a massive 195 per cent, Zip Co reported 12.4 million transaction numbers for the period, plus an increase of 80 per cent on quarterly revenue to $114.4 million.
The BNPL provider’s record-breaking results come after a slew of new retailers joined the platform. Both customer numbers and merchants on the platform increased by more than 80 per cent, with new retailers including JB Hi-Fi, The Good Guys, L’Occitane, Microsoft, Boohoo, JD Sports and Adore Beauty.
Managing director and chief executive of Sydney based Zip Co, Larry Diamond, described the result as “another exceptional set of numbers”.
BNPL services continue to gain traction as a popular payment method and low-cost alternative to traditional credit cards. Young shoppers are increasingly turning their backs on credit cards in favour of interest free BNPL services, citing high fees and interest payments as a concern when it comes to traditional credit accounts.
Hailed as a modern version of lay-buy, the appeal of BNPL services, like Zip, is that it offers an easy path to instant gratification, allowing customers to walk out of the store with the item immediately and pay it off in instalments.
Zip Co has over two million customers in Australia and New Zealand. When used responsibly, BNPL services can work as a helpful budgeting tool. Customers can easily sign up for a Zip account online and be approved within minutes. Zip can be used online and in-store, with Tap & Zip available in-store wherever contactless payments are accepted.
Every transaction made with Zip Pay is interest free, always. Offering flexible repayment options, customers can choose from weekly, fortnightly or monthly options, with different accounts also available to match spending needs.
There is no doubt that shopping habits changed at an unprecedented rate during the pandemic and BNPL services continue to support businesses as they adapt to rapidly changing consumer behaviours.
In addition to their consumer focused BNPL services, Zip Co now also offer small business loans designed to help stimulate business growth.