Zip and Primer Join Forces to Transform the US Payment Landscape
In a strategic move set to make waves in the financial world, Zip Co, a leading digital finance company, has announced its partnership with Primer, a global authority in unified payment and commerce infrastructure, as outlined in Fintech Global News. This collaboration is poised to reshape the payment landscape in the United States, with both companies aiming to intensify Zip’s market presence.
Zip Co, a prominent player in the digital finance industry listed on the ASX, has a mission to become the preferred payment choice worldwide. The company offers point-of-sale credit and digital payment services to millions of customers globally, connecting them with an extensive network of merchants. Zip is known for its transparent, flexible, and equitable payment solutions.
On the other hand, Primer is recognized for its unifying role in payment and commerce solutions. It provides businesses with a unique combination of payment recovery tools, insightful analytics, and success modules, offering them unparalleled visibility and adaptability throughout their payment cycles.
The primary goal of this partnership is to expand and optimize Zip’s payment stack, leveraging the vast potential of the US market. Zip aims to broaden the distribution of its Buy Now, Pay Later (BNPL) offering, with WebBank serving as the lender. Additionally, Primer plans to integrate Zip as a viable payment alternative for merchants across various sectors, including retail, fashion, travel, and mobility.
Recent data indicates Zip’s impressive growth, with a record transaction volume of $8.9 billion, representing a 7.0% year-over-year increase. The group’s revenue reached $693.2 million, reflecting a substantial 16.1% year-over-year growth rate. Furthermore, Zip concluded the fiscal year 2023 in the US with a sustainable positive cash EBTDA.
Gabriel Le Roux, Co-Founder of Primer, expressed enthusiasm about the partnership, saying, «We’re thrilled to be the infrastructure of choice for Zip. While delivering localized payment expertise, optimization features, and insights, we’re supporting companies like Zip to optimize payment costs and capture untapped revenue opportunities. Similarly to Zip, the U.S. is a strategic market for Primer, where we have seen significant growth, forecasting a striking 30-fold increase in payment volume in 2023. We eagerly look forward to this collaboration and assisting Zip in achieving their North American market ambitions.»
Larry Diamond, Co-Founder and US CEO of Zip, commented, «With an $11 trillion total addressable market in the U.S., BNPL services account for just 2% of all payments. Our collaboration with Primer not only boosts Zip’s growth path but also equips us to harness this immense market potential sustainably and at scale.»
The alliance between Zip and Primer represents a significant development in the financial technology sector, poised to offer innovative and efficient payment solutions to businesses and consumers across the United States. This partnership has the potential to reshape the way payments are made and managed in the country, making it one to watch in the coming years.