Zip’s transaction volume grew 4% YoY to AUD 2.7 billion (~USD 1.8 billion) although the total active customer count fell to 7.4 million in Q2 FY 2023, reflecting a 1% YoY drop. Revenue rose 13% YoY to AUD 184 million (~USD 121 million) in Q2 helped by new enterprise merchants such as Jetstar, Uber, and eBay (in the Australian market). Australia and New Zealand (ANZ) accounted for the majority (~48%) of total revenue, followed by the US (~47%) although the US accounted for the bulk of Zip’s transaction volume (~49%).

The US market yielded a higher average transaction value of AUD 189 (~USD 124) compared to ANZ’s AUD 94 (~USD 62). ANZ operations reported a 6% YoY decline in transaction volume, although revenue rose by 17% YoY. Zip’s US operations reported transaction volume growth of 12% YoY with revenue rising 8% YoY.

Zip’s credit performance improved as net bad debt declined to 1.5% in Q2 from 2.4% in Q1. The improvement was driven by reduced credit losses among older cohorts in the US despite a deteriorating macroeconomic environment.

Zip’s physical card program, launched in October 2022 , gained momentum with 300,000 issued cards, with volume processed by physical cards in December, making up 28% of all in-store purchases and in-store volume for the quarter up 57% YoY. Following the closure of operations in the UK and Singapore in July 2022, the company noted that it was on track to neutralize cash burn from operations in other markets during H2 FY 2023.