Buy-now pay-later (BNPL) player Zip Co's (ASX: Z1P) US arm Quadpay has achieved record third quarter results as the company's transaction volumes more than doubled to hit $1.6 billion.
The record US results come during what Z1P describes as a "typically a seasonally quieter trading period", with Quadpay achieving $762 million in transaction volumes - up 234 per cent year on year.
In addition, Quadpay nearly tripled revenue during a period when 674,000 new customers signed up to the BNPL platform (up 153 per cent to 3.8 million customers).
Overall group revenue rose by 80 per cent year-on-year to $114.4 million, which CEO and founder Larry Diamond says represents major momentum for the company.
"Our US business was again a standout, confirming our position as truly one of the fastest growing global BNPL leaders," says Diamond.
"The resilience of the UK team is now delivering results and we look forward to a very exciting future for that region.
"Our focus on unit economics continues to provide a point of difference and points to a strong bottom line at scale."
Z1P's ANZ business also performed strongly, with transaction volume up 61 per cent in the quarter to $837.3 million.
Revenue in the region also hit a new high of $57.9 million in Q3 as Zip added more than 230,000 new customers to the BNPL platform.
Zip launched in the UK in late-2020 following a $120 million placement and the deployment of Quadpay in the region. Since then, a number of flagship merchants have signed up including Homebase, JD, Boohoo and The Fragrance Shop.
During the quarter Zip also commenced a soft launch of the platform in Canada and agreed to terms for a strategic investment into South East Asia via leading Philippines BNPL player TendoPay.
Shares in Z1P are up 10.22 per cent to $9.17 per share at 10.58am AEST.Never miss a news update, subscribe here. Follow us on LinkedIn, Instagram and Twitter.
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