Zip Expands U.S. BNPL Operations and Diversifies Product Offering

Australian Buy-Now-Pay-Later (BNPL) provider Zip has released its latest financial results and outlined its strategy for U.S. market expansion. In the fiscal year ended June 30, Zip’s cash earnings before taxes, depreciation, and amortization (EBTDA) reached AUD 170.3 million, more than doubling from the previous year. U.S. operations drove 41.6% growth in total transaction volume (TTV), primarily from non-discretionary spending. Net bad debts remained low at 1.5% of TTV, slightly down from 1.7% last year.

Zip projects more than 35% growth in U.S. TTV for fiscal 2026. Combined with an assumed 6% revenue growth in Australia, full-year cash EBTDA could reach AUD 230 million. The U.S. accounts for roughly 80% of Zip’s cash earnings and over two-thirds of its sales.

Product innovation is a key part of Zip’s U.S. strategy. The company introduced an eight-installment plan covering higher-value purchases, which accounted for 18% of Q4 transaction volume, and plans to launch a two-installment option in H1 2026 for recurring expenses such as utilities. Interest-free installments are exclusive to the U.S., while in Australia, users have access to revolving credit and credit-card style plans.

Zip intends to list on Nasdaq while retaining its primary ASX listing. This move is designed to attract U.S. and international institutional investors and support growth in the American BNPL market, where competitors such as Affirm, Sezzle, Klarna, and Afterpay are concentrated. CEO Cynthia Scott noted that some investors can only access U.S.-listed shares, making the dual-market presence strategically significant.

The company is also expanding merchant partnerships in the U.S., focusing on daily consumer expenses and public utility payments. Platform enhancements and risk management measures help maintain low default rates, with Q4 2025 U.S. bad debt at 1.7% of transaction value.

Zip’s internationalization strategy emphasizes combining product innovation, risk management, and capital market operations. By extending BNPL beyond retail consumption and increasing engagement with B2B and cross-border partners, the company aims to establish a sustainable operational foundation in North America and beyond.