Zip

About Wisr

Zip is a leading global buy-now, pay-later (BNPL) player with presence in 13 markets, bringing customers and merchants together for a fair and valued payment experience. Zip’s mission is to be the first payment choice, everywhere and every day. Zip offers point‑of‑sale credit and payments to consumers and provides integrated online and in‑store retail finance solutions to merchants in the retail, home, health, automotive and travel industries. 

SIZE OF LOAN BOOK A$2.4BN
MAKEUP OF LOAN BOOK BUY NOW, PAY LATER
GEOGRAPHIC DISTRIBUTION OF LOAN BOOK AUSTRALIA: 89%
US: 7%
REST OF THE WORLD: 4%
OUTSTANDING DEBT ISSUANCE PUBLIC ABS TRANSACTIONS: A$1.4BN
BILATERAL FACILITIES: A$1.8BN

Zip was established in 2013 and has expanded significantly, with about 1,500 employees, 91,000 retail partners and 11.4 million customers as of 30 June 2022. The company’s BNPL service offers short- and long-duration instalments in a single checkout experience.

Zip provides fair, flexible and transparent payment options to individual consumers and SMEs, helping them take control of their financial future and helping merchants grow their businesses. 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).

Ownership and capital structure

Zip was founded by Larry Diamond and Peter Gray, and listed on the ASX in 2015. One of the fastest growing BNPL providers globally, Zip has a presence in Australia, Canada, Czech Republic, India, Mexico, New Zealand, the Philippines, Poland, Saudi Arabia, South Africa, the UK and the US.

Funding strategy

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 four 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 1.8BNto develop and expand its relationships with domestic and international financial institutions and investors.

Business performance

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 day-to-day value and benefits in managing budget and lifestyle. Customers are transacting at a growing breadth of merchants.

Zip continues to deliver solid top-line metrics with strong results across its consumer operations in the US, Australia, New Zealand and the rest of the world, despite growth being tempered by a deterioration in consumer sentiment and adjustments to risk settings.

Zip has a unique revenue model that derives income from customers and merchants, enabling it to support partners in any vertical and deliver market-leading unit economics.

With strong growth across all key metrics, Zip continues to deliver innovative products and services to its customers. Receivables continue to demonstrate strong and stable performance for the company.