Australian ‘Buy Now, Pay Later’ Firm Looking to Allow Users to Trade Crypto on Customer Demand
Zip Co Ltd, an Australian buy now, pay later (BNPL) firm, explores the option to allow its users to trade cryptocurrencies.
Trading in crypto using Zip digital wallets was one of most requested new product features from users, said co-founder Peter Gray on Thursday.
Zip said it would likely launch the new service in the US first and then in the next 12 months in Australia. The US is driving its fourth-quarter growth and is set to soon become its biggest market by volume.
The company’s fourth-quarter volumes and revenue doubled, with transaction volumes hitting A$1.76 billion ($1.29 billion) in the June quarter and volume at its US unit quadrupled.
Zip’s Australian user base is mature, with about 30% of adults having a BNPL account.
This attempt by Zip to go into crypto is also propelled by the company's established competitors like Afterpay and Klarna expanding into more countries and planning new offerings like a banking app. The BNPL sector is also attracting the giants like PayPal and even Apple.
“We know our younger generation of customers seek additional products and services that are relevant to them,” Gray told Reuters. The company itself is also looking at expansion in Europe and the Middle East.