Background: Zip Co, founded in 2013, was one of the original buy now, pay later pioneers in Australia - even launching slightly before Afterpay. Since then, it’s grown to over 6.3 million customers worldwide. At its peak in 2021, Zip was valued at over $9 billion, but it’s now worth less than half that.

What happened: Zip's latest results suggest a comeback might be brewing, thanks to its booming US business. The company reported total transaction volume (TTV) of $3.9 billion for the quarter, up 34%, with $2.9 billion of that coming from the US - a 51% year-on-year jump.

What else: By comparison, its Australia and New Zealand business grew just 9%, and the US now makes up over 70% of Zip’s total TTV... marking a major shift for what was once a homegrown Aussie startup.

What's the key learning?

💡When the local market is tapped out, you’ve got to find a new one to continue growing. Once you’ve reached saturation, the only way forward is to expand beyond home turf.

💡Zip went on a global acquisition spree between 2016 and 2022, snapping up:

• Spotiii in the Middle East for $21 million
• Twisto in Europe for $140 million

And while not every move paid off, its US business has now become the core of the company, driving over 70% of total transaction volume.

💡Australia’s market is simply too small to sustain long-term explosive growth. With just 27 million people, both Zip and Afterpay had no choice but to look overseas to keep the momentum going.