Zip: BNPL Offers Solution to 100 Million Americans Who Can’t Access Traditional Credit

Australia-based buy now, pay later (BNPL) provider Zip said Tuesday (Feb. 25) that demand from consumers and merchants drove its growth in the most recent half.

The company’s growth was especially strong in the United States, where it aims to serve consumers who are unable to access traditional credit and who use BNPL because of its flexibility, transparency and cash management capabilities, according to an investor presentation released Tuesday in conjunction with its earnings call.

“Our customers are everyday Americans, a group of over 100 million Americans who have difficulty accessing or take higher costs to access traditional credit,” Zip Group CEO and Managing Director Cynthia Scott said during the earnings call.

The company also added new merchants who see the advantages of having Zip available for their customers, Scott said.

Zip saw its total transaction value (TTV) increase 23.9% in the six months ended Dec. 31, compared to the same period a year earlier, according to a Tuesday earnings release.

The company also saw the number of active customers increase 1.5% to 6.3 million, and the number of merchants on its platforms rise 7.6% to about 81,900.

Zip serves two markets: Australia and New Zealand (ANZ) and the United States. Its TTV increased 0.4% in ANZ as the company returned to growth after focusing on margin improvement, while its TTV leaped 40.3% in the U.S. due to “exceptional” holiday activity and deeper customer engagement, according to the earnings release.

To continue building on this growth, Zip introduced new products that allow customers to finance larger purchases.

In ANZ, the company expanded Zip Plus to new customers and launched Zip Personal Loan in January. Zip Plus allows customers to spend up to $8,000 everywhere Visa is accepted, according to the company’s ANZ website. The firm found that Zip Plus customers transact 42% more often than Zip Pay customers. Zip Pay is the company’s solution for everyday use that allows customers to spend up to $1,000.

In the U.S., Zip expanded its Pay-in-8 installment solution to all eligible customers in the app, saying this product facilitates higher-value purchases. Together with Pay-in-4, which was released earlier, this is part of a Pay-in-Z platform that will be launched in fiscal year 2026 that will enable Zip to offer additional personalized and flexible payment solutions. These solutions let customers split their purchases into four or eight installments and pay every two weeks, according to the company’s U.S. website.

“The attraction of this product for our customers is the ubiquity that they can be used everywhere in as many settings for as many financial needs as possible,” Scott said during the call. “So, our customers are using our products for everyday spend and also for more considered spend.”