I find Zip Co Limited an interesting stock at this time. It seems many people are jumping on board with the momentum of this stock. A 300m debt deal is appetising, while racking up $71.7 million in quarterly revenue, a new record. Additionally, monthly arrears have decreased, which is a good sign. With the Christmas period quickly approaching it could be imagined that more people will use the buy now, pay later option. Covid19 has left many jobless and with less disposable income and therefore, the product may achieve our community’s estimations. I currently do not own the stock but if it comes into the $6 price range I will be jumping on board.

Zip Co Limited (ASX: Z1P) has today marked the official launch of Zip Business by partnering with eBay Australia, to offer its 40,000 Australian small and medium-sized businesses the opportunity to access working capital via the eBay marketplace.

The partnership between eBay and Zip Business is designed to give merchants the freedom to purchase inventory, cover short-term expenses such as marketing campaigns, and manage their cashflows, via access to flexible lines of credit. As part of the official launch, Zip is bringing the Spotcap brand into the Zip Business portfolio.

Zip Business will be leveraging the deep credit experience in the Spotcap business and combining it with Zip’s sophisticated risk decisioning and real-time onboarding to rapidly scale the SMB Buy Now Pay Later offering.

This partnership is the first in an exciting series of integrated products and solutions Zip will progressively roll out as it launches Zip Business, supporting both SMBs and its retail and channel partnerships.

Peter Gray, Co-founder and Chief Operating Officer, said: “Zip is extremely excited to formally launch its Zip Business platform to create a suite of products for the small business community, a segment that has been underserved by the traditional lenders in recent years. This comes at a time when Australia’s small businesses are confronting the extreme challenge of COVID-19, which has created enormous pressure on cashflow and ongoing business investment. A thriving small business community is critical to the health of the Australian economy and we are deeply committed to supporting the growth of these important businesses”.

Debt Funding Zip is also pleased to announce that it has agreed to a A$100 million debt funding facility with US firm Victory Park Capital Advisors, LLC (VPC) to fund the Zip Business receivables. Once established, the facility will give Zip the flexibility and capacity required to support the launch of Zip Business.

Zip has a strong partnership with VPC. In November 2015, Zip announced a A$108 million asset backed warehouse facility with the firm, which grew to $200m, making it one of Zip’s earliest debt facility partners.

ZIP ANNOUNCES PARTNERSHIP WITH EBAY, LAUNCHES ZIP BUSINESS
Zip Co Limited (ASX: Z1P) (“Zip” or “the Company”) has today marked the official launch of Zip Business by partnering with eBay Australia, to offer its 40,000 Australian small and medium-sized businesses the opportunity to access working capital via the eBay marketplace.

I hold ZIP shares

Z1P - QUADPAY ACHIEVES RECORD MONTH, SECURES MERCHANTS WITH OVER $3BN IN COMBINED VOLUME, FORGES NEW PARTNERSHIPS

Achieved record monthly transaction volume in excess of US$70M in July, representing a 30% increase on the June quarter average and a 600%+ increase YoY.

Added 133,000 customers in July and surpassed the 2M customer milestone in August.

Partnered with multiple Internet Retail 100 merchants including Fanatics and Mercari (TYO:4385) representing combined online volume of over US$3bn. Other notable merchant onboardings include Caleres Group (NYSE: CAL). Enterprise sales pipeline going into the holiday period continues to remain strong.

Established a strategic partnership with Fiserv (NASDAQ: FISV) to offer Buy Now Pay Later (“BNPL”) services across their US based merchant base, launching with Fanatics.

Partnered with MasterCard Vyze to enable BNPL within the Vyze alternative lending stack.

QuadPay continues to deliver industry leading net transaction margins (NTM) greater than 2%.

Secured a debt facility of up to US$200m provided by Goldman Sachs and Oaktree.

21 January 2021

Q2 FY21 TRADING UPDATE ZIP CEMENTS ITSELF AS A TRUE GLOBAL BNPL LEADER

GROUP HIGHLIGHTS

* Note: all figures in AUD unless otherwise specified.

• Record group quarterly revenue of $102.0m (up 88% YoY).
• BNPL December revenue $40.2m (up 94% YoY).
• Record quarterly transaction volume of $1.6b (up 103% YoY).
• December transaction volume of $628.4m (up 104% YoY).
• Transaction numbers for the quarter of 10.7m (up 149% YoY).
• Customer numbers increased to 5.7m, up 97% YoY.
• Merchants on the platform increased to 38.5k (up 73% YoY).
• Zip US (QuadPay) delivered record results in Q2 across all core metrics –$673.1m in transaction volume, $47.6m in revenue and 915knew customers.
• The Company raised $176.7m in equity, with the majority of funds allocated to fuel the significant US growth opportunity

Zip Co Limited (ASX: Z1P) (Zip or the Company) is pleased to provide a trading update for the first four monthsof FY21, ended 31 October 2020.

COMPANY HIGHLIGHTS

• The Company continued to deliver record results across all regions –Australia, NewZealand and the United States.
• FY21 YTD BNPL revenue was $96.7m(up 91%)for the first four months of the year, withOctober monthly revenue of $27.6m.Including Zip Business,FY21 YTD total revenue ona pro forma basis was $100.2m, with $28.4m recorded inOctober
• Record transaction volume in October of $401.1m (up 104% YoY), with the Company now annualising at $4.8bn+. Monthly transaction numbers were up 140% YoY.
• Customers increased to 4.8m(up 109% YoY)and global merchants on the platform now exceed 36.5k(up 74% YoY).
• Zip US,under the QuadPay brand,accelerated post Q1 FY21,with October delivering record results across all key metrics–$160.6m in transaction volume (up 200% YoY), $11.4m in revenue and more than 2.5m customers.
• The App continued to remain a stand-out, finishing at #25 in the Shopping category inthe US App store with 328,000downloads in October. November has again seen asignificant step-upat 15,000daily downloads. Across the Company, app downloads increased to over 5m, up 200%+YoY.
• The team also became the first BNPL to launch a Chrome Extension, an innovative wayto allows customers to pay lateron any website utilising unique virtual card technologyalongside a Google plug-in.
• In Australia, Zip became a principal issuer with Visa and launched Tap & Zip, an excitingproduct feature that reimagines buy now, pay later (BNPL) instore by enabling usersto shop effortlessly anywhere that accepts Visa1.Initial results have seen a marked up lift in engagement, with early adopters of this featuretransacting on average 4+times in the last 21 days.
• In Australia monthly arrears, a forward indicator of future losses, reduced from 1.33%in June to 0.89% in October–an outstanding result in the current climate. Anywhere that accepts Visa payments online and Visa contactless payments in-store.
• The momentum across the Companyhas continued in November with all regions set to deliver step change month-on-month growth, prior to the inclusion of the cyber promotional activity at the end of the month

Poof of credit checks

20 October 2020

ZIP UNLOCKS EVERYDAY PAYMENTS WITH TAP & ZIP

Zip Co Limited (ASX: Z1P)(“Zip” or “the Company”)today announces the official launch of Tap & Zip, a new product feature that reimagines buy now, pay later (BNPL) instore by enabling Zip Pay users to shop effortlessly anywhere that accepts Visa.

Tap & Zip builds on Zip’s mission to be the first payment choice everywhere and everyday. It will see Zip expand into more everyday spend categories and capitalise on the significant instore payments opportunity. Currently, just 13%2 of stores in Australia are able to accept buy now, pay later options. Tap & Zip addresses this significant and untapped customer need.

Today’s announcement underscores Zip’s obsession with providing merchants and customers the best possible payment experiences. For merchants, this initiative greatly increases access to new customers, bigger basket values and increased sales volumes. For customers, it means they can use Zip Pay to shop everywhere and pay later, always interest-free. Customers can also continue to check-out using Zip’s existing instore solutions, if that is what they prefer.

Tap & Zip follows a strategic product review of Zip’s instore payments experience, which to date has been based on barcode and QR technology, which requires complex point-of-sale integrations. Ever since contactless payments were introduced in Australia in 2006 Australians have universally accepted tapping as the preferred experience. With 24% of Zip transactions occurring in physical stores compared with the broader Australian retail data, which sees approximately 87% of payments instore –the opportunity to grow the BNPL share is significant.

On the 20th of January 3 directors have aquired more shares of the company.

ZIP UNLOCKS EVERYDAY PAYMENTS WITH TAP & ZIP

Zip Co Limited (ASX: Z1P) (“Zip” or “the Company”) today announces the official launch of Tap & Zip, a new product feature that reimagines buy now, pay later (BNPL) instore by enabling Zip Pay users to shop effortlessly anywhere that accepts Visa.

Tap & Zip builds on Zip’s mission to be the first payment choice everywhere and every day. It will see Zip expand into more everyday spend categories and capitalise on the significant instore payments opportunity. Currently, just 13% of stores in Australia are able to accept buy now, pay later options.

Tap & Zip addresses this significant and untapped customer need. Today’s announcement underscores Zip’s obsession with providing merchants and customers the best possible payment experiences. For merchants, this initiative greatly increases access to new customers, bigger basket values and increased sales volumes. For customers, it means they can use Zip Pay to shop everywhere and pay later, always interest-free. Customers can also continue to check-out using Zip’s existing instore solutions, if that is what they prefer. 

Tap & Zip follows a strategic product review of Zip’s instore payments experience, which to date has been based on barcode and QR technology, which requires complex point-of-sale integrations. Ever since contactless payments were introduced in Australia in 20063 Australians have universally 
accepted tapping as the preferred experience. With 24% of Zip transactions occurring in physical  stores compared with the broader Australian retail data, which sees approximately 87% of payments instore – the opportunity to grow the BNPL share is significant.

Zip Announces Partnership with Ebay, Launches Zip Business

https://www.asx.com.au/asxpdf/20200826/pdf/44lxm2c5ycy4yf.pdf

The announcement of a partnership with eBay Australia and the launch of Zip Business saw a massive jump in the SP today, up 27.48%. I don't hold Z1P, but I did a bit of quick maths out of general interest.

With the SP rising by $2.08 and 390,403,189 shares on issue, Z1P's market cap increased by $812,038,633.12. The announcement mentions "40,000 Australian small and medium-sized businesses the opportunity to access working capital", which equates to an increase in market cap of $20,300.97 per business.

The announcement makes no mention of how Zip Business intends to profit from the partnership; perhaps this will be mentioned tomorrow if Zip provides guidance in its FY20 Full Year Results.

Q2 FY21 TRADING UPDATE

GROUP HIGHLIGHTS * Note: all figures in AUD unless otherwise specified. 

? Record group quarterly revenue of $102.0m (up 88% YoY).

? BNPL December revenue $40.2m (up 94% YoY).

? Record quarterly transaction volume of $1.6b (up 103% YoY).

? December transaction volume of $628.4m (up 104% YoY). ? Transaction numbers for the quarter of 10.7m (up 149% YoY).

? Customer numbers increased to 5.7m, up 97% YoY.

? Merchants on the platform increased to 38.5k (up 73% YoY).

? Zip US (QuadPay) delivered record results in Q2 across all core metrics – $673.1m in transaction volume, $47.6m in revenue and 915k new customers.

? The Company raised $176.7m in equity, with the majority of funds allocated to fuel the significant US growth opportunity.

DISC~I hold

ZIP PARTNERS WITH FACEBOOK TO DRIVE SMALL BUSINESS GROWTH

ZIP Quarterly Report

08-May-2020:  April Trading Update - Z1P Continues to Perform Strongly

Zip Co Limited (ASX: Z1P) (Zip) is pleased to provide a trading update for the month ending 30 April 2020. 

GROUP HIGHLIGHTS:

• Monthly revenue of $15.1m, up 81% YOY ($45.0m in Q3)
• Monthly transaction volume of $181.6m, up 86% YOY  
• Receivables of $1.2b, up 97% YOY
• Customer numbers increased to 2.0 million, up 66% YOY (70k added in month)
• Merchant numbers increased to 23.1k, up 50% YOY
• Net bad debts of 1.99%, significantly outperforming the market
• Monthly arrears remained flat at 1.57%  
• Customer repayment success rates higher or on par with pre COVID-19 rates
• Monthly repayments as a percentage of opening receivables increased to 15% (12% in March 2020)
• Hardship assistance for customers peaked at end of March (less than 0.08% of receivables) 

Managing Director and CEO Larry Diamond said: “April was another very strong month for Zip, and in particular when considering the shutdown of a large portion of the economy. Our product differentiation and penetration into purchases for online, the home, and everyday spend categories, delivered robust transaction volume. Our revenue model has continued to deliver a strong result in the face of a challenging economic environment for retail more generally.  The start of May looks to be considerably stronger again relative to April, and we look forward to supporting our retail partners as social restrictions gradually ease and brick and mortar stores begin to re-open.” 
 
Executive Director and COO Peter Gray said: “The investments we have made in our credit and decision technology platform over the last 7 years, our flexible wallet product, and the unique levels of engagement we have with our customers are paying off. We have seen Zip continue to deliver market leading receivables performance. The increased repayment metrics were extremely pleasing, and we are well placed to continue to successfully manage our portfolio in this challenging time.” 

--- click on link above for more ---

Also, one month ago:  08-Apr-2020:  March 2020 Quarterly Update

I can't help but feel that Z1P is like the old Betamax video cassette system, which was superior in every way to the VHS system yet got killed by VHS anyway - because VHS was more popular and it had a positive feedback loop.  The more stuff that was available on VHS, the more people used VHS, the more stuff became available for VHS, and so it went - until Betamax just died.  Of course so did VHS eventually, but not before becoming the dominant format globally.  VHS was itself eventually replaced by DVDs and Blu Ray.  Afterpay is the VHS of Australia and zipPay seems to be the Betamax of Australia.  IMHO.  Z1P appears to have better client/customer screening processes, so will have less bad and doubtful debts, and there are other advantage to their business model as well, but APT has the first mover advantage, and the momentum, and they're going to be the winners, with the vast majority of market share - particularly here in Australia (they've already achieved that, but I think their market share will just increase further from here) unless they implode under a mountain of debt.  I don't have good visibility of the competitive landscape for them in other countries.  I know that if people view their business model as innovative and advantageous, others will try to copy them, with a few tweaks, to get in on that market and grab a slice of that pie.  I don't invest in either company.  I'm very wary of 2nd tier and lower tier lenders.  As many have said, APT and Z1P have NOT had their business models properly stress-tested through the full economic cycle.  That is probably starting to occur now, and it might expose some cracks.  Lower tier lenders are fraught with risks in my opinion and there are also some questionable practises employed by some of them.  I have avoided TGA (Thorn Group) and CCV (Cash Converters) over the years for similar reasons, and look what has happened to them!   While I see the stake that Tencent has just bought in APT as a big plus, I'm still not tempted to jump onboard that runaway train.

"Q1 FY21 TRADING UPDATE ZIP.

BECOMES GLOBAL BNPL PLAYER, DELIVERS RECORD RESULTS

Zip Co Limited (ASX: Z1P) (Zip or the Company) is pleased to provide a trading update for the quarter ended 30 September 2020 (Q1 FY21)."

Refer attached