Zip Co (ASX: ZIP) is a leading next generation global financial services company, offering innovative, people-centred products that bring customers and merchants together. On a mission to be the first payment choice everywhere and every day, Zip offers point-of-sale credit and digital payment services around the world, connecting millions of customers with its global network of tens of thousands of merchants.

Zip is committed to responsible lending and is managed by a team with more than 100 years’ experience in retail finance and payments. Zip is also a licensed and regulated credit provider, and is well positioned to meet the upcoming regulatory obligations in Australia.

Zip was established in 2013 and has expanded significantly with 72,300 retail partners and 6.2 million active customers as of 30 June 2023. The company’s unsecured consumer lending service offers short- and long-duration instalments in a single checkout experience. Revenue is generated from merchants
(merchant fees), consumers (predominantly account fees, establishment fees, instalment fees, late fees and interest) and transaction fees (affiliate fees and interchange).

Zip was founded by Larry Diamond and Peter Gray, and listed on the ASX in 2015. The company is funded by a mix of ordinary shares, convertible bonds, borrowings and asset-based financings.

Zip aims to have a diverse funding strategy in place, to ensure short- and long-term funding requirements are met. This diversification is achieved between warehouse facilities and capital market transactions, provided by domestic and international investors and lenders.

In 2019, Zip established a master trust that includes the rated series and two variable funding notes secured by a single pool of receivables. Zip has been a frequent issuer in the Australian ABS market since 2019, with six public securitisation transactions since establishing the master trust.

Zip is committed to exploring investor demand and requirements for ABS transactions in order to diversify and strengthen its funding sources. The business is continuing to develop and expand its relationships with domestic and international financial institutions and investors.

Zip continues to experience increased demand for its products from new and existing customers. In a world where customers are experiencing cost of living pressures, Zip continues to provide customers with day-to-day value and benefit in managing budget and lifestyle. Customers are transacting at a growing range of merchants.

In 2022, Zip adjusted its strategy to focus on core markets (Australia, New Zealand and the US) with the aim to create a simpler business with stronger foundations, fast-tracking profitability. Zip has delivered solid top-line metrics with strong results across its consumer operations in these countries, despite growth being tempered by a deterioration in the external environment and adjustments to risk settings. In line with its strategy, Zip has completed the divestment of its businesses in Central and Eastern Europe (Twisto), South Africa (Payflex) and the Middle East (Spotii), and also discontinued its operations in Singapore, the UK and Mexico.

Zip continues to make good progress on its strategic objectives with a focus on strong unit economics and prudent cost management, delivering sustainable and profitable growth in its core markets. Receivables continue to demonstrate strong and stable performance for the company, providing a strong platform for continued growth.

Prashanth Ranganatha 
Director, Treasury
+61 433 045 090
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www.zip.co/au