The USD 225 debt facility provided by Victory Park Capital (VPC) will support the growth of Zip’s US receivables.
As the third transaction between Zip and VPC, the new debt facility represents an extension of their long-standing relationship. The two companies began their partnership in 2015 with a USD 70.7 million asset-backed warehouse facility that later grew to USD 131 million. In 2020, VPC and Zip closed a USD 65.5 million debt facility to fund receivables and support the Zip Business platform.
Officials from Zip said they are happy to announce their renewed collaboration with VPC, a cornerstone investor in Zip since their early days. This pivotal transaction marks a significant step in bolstering Zip's expansion within the US market. As they refine and broaden their portfolio of consumer financing solutions, the three-year deal provides them with both the strategic timing and the flexibility needed to spearhead innovation in both their new and existing product lines.
Also commenting on this development, representatives from VPC stated that Zip’s innovative payment solutions have provided flexibility and ease to consumers and businesses worldwide. They are happy to extend their partnership and continue supporting the company as it focuses on ongoing profitable growth.
In December 2023, Zip has partnered with Google Pay to offer flexible payment options at checkout for merchants in the US. Google Pay is set to integrate Zip's Pay-In-4 solution for merchants and businesses in the US. This move aims to enhance the flexibility of customer expenses by providing Buy Now, Pay Later (BNPL) options at checkout.
The integration is scheduled for a pilot launch in January 2023, aligning with the increasing adoption of BNPL services. The feature will be available on select merchant Android apps offering Google Pay and on specific merchants' websites from Android devices. Users will be informed about the Zip BNPL option through a promotional banner on Google's home screen, allowing them to explore various BNPL providers and their terms before opting for flexible payment plans on purchases exceeding USD 35.
Zip is a fintech company, offering innovative, people-centred products and services that bring customers and merchants together. Operating in two core markets - Australia, New Zealand, and the Americas, Zip offers point-of-sale payment solutions, connecting millions of customers with its global network of tens of thousands of merchants.
Founded in Australia in 2013, Zip provides flexible payment options, helping customers to take control of their financial future and helping merchants to grow their businesses.
Victory Park Capital Advisors is an SEC-registered, established credit manager. The company was founded in 2007 and is headquartered in Chicago, Illinois, with additional resources in New York, Los Angeles, San Francisco, and London. VPC provides custom financing solutions across the private capital spectrum, focusing on companies with strong corporate governance and a compelling growth trajectory. VPC invests in emerging and established businesses across various industries worldwide.
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