Zip Business reports annual growth boom

Zip Business reports annual growth boom

The business lender’s November revenue and transaction volumes surged upwards but COVID-19 dampened its December results.

Zip Business’ performance in Australia over the second quarter of the 2022 financial year was one of record growth, with the business lender reporting distinct upticks in its revenue, transaction volumes and customer base.

Released as part of Zip Co’s financial results for the FY22 quarter, the lending subsidiary reported a revenue figure of $4.3 million – an increase of 13 per cent compared to the previous quarter, and 115 per cent to the previous year.

Equally, transaction volumes, which came to $37 million, marked a 9 per cent rise month-on-month, but a 281 per cent increase to the same period during the 2021 financial year.

According to the lender, “record transaction volumes” achieved in November were a driving factor for the lender’s growth over this quarter, before COVID-19 restrictions introduced in December started to “considerably impact small businesses”.

Equally, the lender suggests that the introduction of the Zip Business Single-Use card was also influential, with the report stating that “early indications show strong customer adoption with 38 per cent of eligible customers transacting using digital cards in the first few weeks since launch”.

Customer acquisition also increased during this period, with Zip Business, as of 31 December, reporting 11,000 customers – a rise of 13 per cent quarter-on-quarter and 633 per cent year-on-year.

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Source: Zip Business reports annual growth boom – The Adviser