The last quarter of FY19 was a success for buy-now pay-later group Zip Co (ASX: Z1P).
The group claims it has smashed its targets set at the beginning of FY19, with transaction volumes up 108 per cent year-on-year to $1.1 billion and revenue up 17 per cent quarter-on-quarter to $27 million.
Zip now has 1.3 million customers using the payment platform, up 80 per cent.
"We finished FY19 with a strong end of financial year, having achieved all financial targets set at the beginning of the year," says Zip CEO Larry Diamond (pictured).
"As a credit card disruptor, we continue to see large numbers of customers adopt the Zip interest free digital wallet as we strive to be the first payment choice everywhere and every day."
During the quarter the Zip app achieved a top 10 ranking across both the Apple (#7) and Google (#7) app stores.
The company achieved significant milestones with retailers too, signing the Just Group which holds popular brands Smiggle, Peter Alexander, Just Jeans, Jay Jays, Portmans, Jacqui E and Dotti.
Kmart, Bing Lee and Freedom also joined the platform during the quarter. At the end of FY19 there are over 36,000 points of presence where customers can check out with Zip at over 16,200 merchants.
The average transaction value on a Zip account dropped by 25 per cent during Q4 to $217. This compares with $103 for Visa and Mastercard, and $299 for American Express according to Zip.
The company is currently in the process of launching the Zip Master Trust, which will allow Zip to scale its funding requirements and reduce its costs over the medium term.
Zip says it is well positioned for a strong FY20 as evidenced by the $1.1 billion in transaction volume processed by the company in FY19, the more than 1.3 million active Zip accounts, and the continued onboarding of major merchants onto the platform.
What was not mentioned by Zip in its Q4 update was the looming threat of a law suit lodged by a lender called Firstmac.
Firstmac trademarked the term 'ZIP' to brand one of its mortgage plans before Zip Co ever existed as a company. As such, Firstmac has taken Zip Co to the Federal Court alleging that Zip infringed its trademark.
Shares in Zip Co are up 11 per cent to $3.53 per share at 11.09am AEST.
Business News Australia
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