Zip Co Limited (ASX: Z1P) is into the digital retail finance and payments industry. The company is a licensed and regulated credit provider. ZIP offers point-of-sale credit and digital payment services. It caters to the retail, education, health and travel industries. The company is operational under the brands Zip Pay, Zip Money and Pocketbook. Zip Co Limited has a digital platform. Hence, it leverages big data in its proprietary fraud and credit decisioning technology for the delivery of real-time consumer responses.
The company’s merchant base expanded over the last quarter, and it now has almost 14,300 partners who make use of Z1P’s digital payment platform.
On 21st May 2019, the company announced that it has entered into a partnership with Kmart Australia Ltd. As a part of this partnership Z1P will provide Zip interest free payments to Kmart’s customers. Zip is most likely to be live across the Kmart’s network by the end this month.
Kmart works towards its goal of providing its customers with everyday products at affordable prices. It has a network of 228 stores offline and is operational online as well. It caters to Australia and New Zealand. The company aims to create on-trend products for consumers at low prices. It further extends open hours to make the experience of shopping convenient and intends to open new stores in communities, to ensure customers have access to reasonable shopping. Kmart is one of Australia’s most profitable discount department stores with over 30,000 team members.
Z1P has made strategic partnerships with large retail chains across Australia and today’s announcement with Kmart adds on to this vision. Zip has a well growing consumer base; hence the alliance would expand this network of acceptance and moreover consumers would be served with more choices.
Commenting on the partnership, Zip CEO and Managing Director, Larry Diamond stated that Zip would prove to be a great fit for the customers who will have better ways to make payments for their everyday use products and purchases. Kmart Director of Retail Australia & New Zealand, John Gualtieri commented that Zip would provide Kmart’s customers more flexibility and convenience and making it a seamless online shopping experience.
The company, in its quarterly update for the quarter ending 31st March 2019 highlighted that Chemist Warehouse, General Pants and Lorna Jane had joined its platform, along a strong enterprise pipeline going into Q3. Zip was officially launched in New Zealand, aiding the roll out of Super Retail Group.
Share Price Information:
On the technical front, the stock is trading up by 2.997% at A$3.780 as on 21st May 2019 at AEST: 2:55 PM on ASX, with a market cap of A$1.29bn. In the last six months, the stock has delivered a return of 282.29% while the YTD return stands at 233.64%.
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