Zip launches credit product for SMEs with eBay partnership

Zip launches credit product for SMEs with eBay partnership

eBay merchants will be the first to access Zip Co's (ASX: Z1P) new business-focused product, designed to give merchants access to working capital.

The partnership between the buy-now pay-later (BNPL) player and eBay will give merchants the ability to purchase inventory, cover short-term expenses, and manage cashflow via access to flexible lines of credit.

As part of the official launch of 'Zip Business', Zip is bringing its Spotcap lending business into the new portfolio.

"Zip Business will be leveraging the deep credit experience in the Spotcap business and combining it with Zip's sophisticated risk decisioning and real-time onboarding to rapidly scale the SMB BNPL offering," says Zip.

According to Zip Co co-founder and COO Peter Gray the eBay partnership is the first in a series of planned integrated products and solutions for Zip Businesses that will support SMEs.

"Zip is extremely excited to formally launch its Zip Business platform to create a suite of products for the small business community, a segment that has been underserved by the traditional lenders in recent years," says Gray.

"This comes at a time when Australia's small businesses are confronting the extreme challenge of COVID-19, which has created enormous pressure on cashflow and ongoing business investment.

"A thriving small business community is critical to the health of the Australian economy and we are deeply committed to supporting the growth of these important businesses."

The deal sees Zip join BNPL competitor Afterpay (ASX: APT) as an eBay partner, though the two are approaching the e-commerce giant in different ways.

In November 2019 Afterpay announced its BNPL offering would be available to shoppers on eBay Australia, tapping into the marketplace's 40,000 small and medium sized merchants.

Shares in Zip are up 18.76 per cent to $8.99 per share at 11:34am AEST.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Business success comes from thinking inside the box for TAXIBOX founder
Partner Content
On a first glance, the world of storage solutions might not seem particularly exciting ...
TAXIBOX
Advertisement

Related Stories

Space beer, crops and embryos: Saber unveils plans for International Space Station mission

Space beer, crops and embryos: Saber unveils plans for International Space Station mission

Australian space engineering company Saber Astronautics has today u...

Will philosophy and ‘counterfactuals’ help us unlock the mysteries of AI?

Will philosophy and ‘counterfactuals’ help us unlock the mysteries of AI?

Artificial intelligence is increasingly being rolled out all around...

ACCC launches probe into misleading social media influencer posts

ACCC launches probe into misleading social media influencer posts

Australia's consumer watchdog is cracking down on social media ...

Takeover talks reignited between Tyro and Potentia Capital

Takeover talks reignited between Tyro and Potentia Capital

Talks of a potential takeover are back on between Sydney-based Tyro...