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· Posted on
February 21, 2024

Zip Co is about to hop on the Bitcoin train - destination cryptoville

Aussie buy now, pay later company Zip Co is using Bitcoin to step out of the saturated BNPL market...and into financial services.

What's the key learning?

  • To stand out from the BNPL crowd, Zip Co is adding crypto trading to its toolkit - moving them towards financial services
  • The buy now, pay later sector is experiencing market saturation, due to a large number of big competitors
  • By adding Bitcoin payments, Zip Co are expanding their product line to negate the effects of the crowded BNPL market.

Background: Aussie buy now, pay later company Zip Co competes head on with the big A(fterpay). The company is worth $4 billion, and it's been growing pretty rapidly.

What happened: It's set to continue expanding as the US BNPL market grows, but there are tonnes of players out there. And let's be honest, Square's purchase of Afterpay would have Zip more scared than Kim K's Met Gala outfit (we all had nightmares).

What else: To stand out from the crowd, Zip's decided to add crypto trading to their toolkit. And, they'll allow merchants to accept bitcoin as a form of payment. This'll help Zip step out of the saturated BNPL market...and into financial services.

So what's the key learning?

💡Market saturation is when the amount of products or services in a particular industry has hit its limit. Aka, there are too many chefs in the kitchen.

💡At the point of market saturation, a company can only achieve further growth by:

  • taking existing market share from competitors, OR
  • increasing the number of consumers who use their product.

💡But one other way to do this is through product expansion, which kinda kills two birds with one stone. By adding bitcoin payments, Zip might be doing just that.

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