- Afterpay rival Zip Co (Z1P) has reported another strong month during COVID-19
- The company reported a monthly revenue of $15.6 million for May, up 78 per cent compared to this time last year
- Its monthly transaction volumes hit $189.3 million, which is up 63 per cent on the previous corresponding period
- Around 63,000 customers joined the buy now, pay later group, which now boasts 2.1 million users
- But on the market this morning, Zip is down 6.98 per cent and is selling shares for $6.08 each
Afterpay rival Zip Co (Z1P) has reported another strong month during COVID-19.
The company reported a monthly revenue of $15.6 million for May, up 78 per cent compared to this time last year.
Its monthly transaction volumes hit $189.3 million, which is up 63 per cent on the previous corresponding period.
In May, around 63,000 customers joined the buy now, pay later group, which now boasts 2.1 million users. Speaking about its net bad debts, Zip Co said its 2.16 per cent rating is in-line with its expectations.
Managing Director and CEO Larry Diamond said that May was another strong month for Zip.
“The performance of the business both in terms of the continued strong transaction volume and in particular the outstanding repayment performance demonstrates the resilience of Zip business model,” he said.
“Our flexible product is a very strong point of differentiation and has assisted millions of Australians to manage their everyday spending during this period,” he added.
Zip says it is continuing to witness the shift from cash to digital and contactless payments. Online sales are expected to stay the same post-COVID-19, as consumers are gaining more confidence in shopping online.
“The prudent tightening of credit both onboarding and behavioural, together with the repositioning of the business over the last few months has us well place to accelerate as the economy begins to recover from the impacts of COVID-19,” Larry explained.
“We remain on track to hit our FY20 target of $2.2 billion in annualised transaction volume set at the beginning of the year,” he said.
On the market this morning, Zip is down 6.98 per cent and is selling shares for $6.08 each at 10:42 am AEST.