Zip Co Limited

Zip Co Limited

Zip Co was founded in 2013 by Larry Diamond and Peter Gray in Sydney, Australia. The company began as a closed-loop credit provider, issuing its own branded cards to merchants before pivoting to the buy-now-pay-later (BNPL) model that would define the sector. Diamond had previously co-founded a digital advertising firm; Gray held marketing roles at Coca-Cola and Procter & Gamble. Zip's core product is an installment lending platform offered at over 100,000 merchant partners globally. The company operates across three asset classes: consumer BNPL, small-business lending via Zip Business, and merchant acquiring services. Known positions include integration with Amazon Australia, Apple Pay on iPhones, and a partnership with Qantas to offer loyalty points on repayments. Geographic footprint spans Australia, New Zealand, the United States and the United Kingdom. Zip reported $8.5B in total transaction volume for fiscal 2024, per its annual report. The firm employs roughly 1,500 staff across offices in Sydney, New York and London. A separate philanthropic vehicle — Zip Co Foundation — was established in 2022, though its funding and operations are not publicly detailed. In November 2024, Zip announced it had completed its acquisition of Sezzle Inc., a US-based BNPL competitor, for $491M (per the firm, November 2024). Zip's structural differentiator lies in its regulated lending model. Unlike peers that rely on third-party issuer banks, Zip holds an Australian Credit Licence and underwrites loans directly on its own balance sheet. This regulatory posture, combined with a focus on merchant-funded revenue rather than late fees, creates a capital-intensive but lower-churn business model.