Zip Reports Strong Q2 Fiscal 2020 Results

Zip has taken market share from Australia’s established credit card issuers by providing mainly younger consumers a convenient, cheap form of financing for low value purchases (averaging AUD 217). A supportive regulatory environment, including RBA’s capping of interchange fees allows Zip to charge a higher merchant fee (averaging 3%) than Visa and Mastercard credit cards (0.9%). Larger merchant fees allow Zip to subsidise cheaper financing for consumers. Use of more contemporary technology also makes it easy for consumers to register and finance purchases, as well as manage their accounts and pay merchants with its two core products of Zip Pay (40% of revenue) and Zip Money (60%).