The interest-free credit card disruptor ZIP Co Limited’s (ASX: Z1P) shares uplifted by 2.151 percent on 20 November 2018, following an announcement regarding a partnership with Bunnings Group Limited (Bunnings) to offer Zip interest-free payments to its customers.
Bunnings Group Limited is a leading retailer of home improvement and outdoor living products in Australia, and this partnership will allow Bunnings’ customers to make interest-free purchases when shopping at Bunnings by using Zip Account.
According to the Zip’s CEO and Managing Director Mr. Larry Diamond, the management of the company is both thrilled and proud to join hands with Bunnings. He further added that Zip would be a great fit for Bunnings as it will provide their customers with a better way to pay, over time, and interest-free facilities. The relationship with Bunnings is line with the Zip’s strategic vision of partnering with Australia’s largest retailers, providing consumers with choice whilst expanding the network of acceptance for Zip’s growing customer base.
Recently, ZIP also announced an interest-free payments partnership with Software of Excellence which is a global leader in providing dental practice management software to dentists and dental practices. The partnership will allow Interest-free installments and deferred payments to assist and increase treatment acceptance while providing significant benefit to both practice and patient.
In the recently released quarterly report of Z1P, it was revealed that in the September quarter the company earned a revenue of $15 million which is 14 percent higher than the June quarter. The company received $14.9 million worth of Receipts from customers which is 16 percent higher than $12.9m in the previous quarter. The total number of transactions in the September quarter increased by 12 percent to 677,487 as compared to the June quarter. In the September quarter, the yield on the receivable’s portfolio remained stable at 17.5% compared to 17.6% in Q4. The Company reported a positive operating margin of $2.5 million in the September quarter. As at 30 September 2018, the Net bad debt write-offs were 2.40%, gross bad debt write-offs were 2.61% and reported arrears were 1.61%.
In the month of August, the company launched native App which reached to top 10 status in the App Store in the first week. As per the quarterly report, since launch, there have been over 250k downloads across both the iOS and Google/Android platforms. Further, the company also improved the in-store payments experience for both customers and partners through the introduction of in-App barcode functionality which works across integrated and non-integrated solutions. In the September quarter, the company also completed the rollout of the Pay Bills with Zip product feature, providing all 853,000 customers the ability to pay bills from their Zip Account.
In the last six months, the share price of the company increased by 12.73 percent as on 19 November 2018. Z1P’s shares traded at $0.950 with a market capitalization of circa $279.54 million as on 20 November 2018 (AEST 1:23 PM).