Alliance Partners

Monday, April 24, 2017

Where Larry Diamond Sees ZipMoney In 5 Years

From Glennon Capital newsletter@glennon.com.au - Glennon holds shares in zipmoney on behalf of clients 

zipmoney

 

ZipMoney CEO and Managing Director, Larry Diamond, talks company growth and their goals for the next 5 years, as well as changes they are seeing in the fintech space and how they are taking on the likes of Visa and Mastercard by offering a different value-proposition – flexibility.

 

Q: What does your company do?

A: Here at zipMoney we are simplifying how you pay everywhere and save everyday, through simple-to-use, consumer friendly and financially-responsible products. We offer an interest-free digital wallet (Zip Pay and Zip Money) allowing consumers to shop seamlessly and responsibly online and instore. We also operate the largest non-bank financial app in Australia, via Pocketbook which lets users manage their money on the fly.

 

Q: How are you growing your company?

A: We have a 3 tiered strategy on the B2B side to acquire retailers:

  1. We focus on the 2m small businesses in Australia and more specifically the 300k digital players who have PayPal accounts – we believe every SMB should offer a Zip pay later tender type at checkout. To do this we have a dedicated inside sales and outbound team supported by seamless integration plugin solutions.
  2. We focus on midmarket and enterprise businesses in Australia through a team of business development agents across core target segments including electronics, home, travel and leisure, health, food and hospitality, fashion and cosmetics.
  3. We build partnerships with key channel operators – this leverages the 1:many relationship where we can access an ecosystem of vendors such as PoS companies or shopping cart platforms through mutually beneficial agreements.

Regarding B2C, we now have over 200,000 customers and more than 3000+ retailers from which to shop from. To this end, we have a few initiatives in place:

    1. Organic acquisition of customers directly via the zipMoney and zipPay websites.
    2. Encouraging customers to browse our stores marketplace to drive further activity from our base and provide customer acquisition for our retailing partners.
    3. Social has become a powerful tool for advocates and consumers.

Q: What changes are you seeing in your industry?

A: We find it an incredibly exciting time in our specific and adjacent sectors. Here are the big changes to name just a few:

  1. bank-issued credit cards falling out of favour with consumers, debit cards, digital wallets and alternative payments growing
  2. retailers looking to solve the omni-channel payments piece and see a single view of the customer
  3. NPP making bank transfers as easy as debit scheme card transactions, but ‘off rails’
  4. the rise of the ‘Pays’, ApplePay, AndroidPay, SamsungPay, AliPay
  5. close to 90% of all mobile payments in Asia led by WeChat Pay and AliPay, all via the QR code and off scheme rails…starting to expand offshore
    the digitisation of eftpos terminals into smart devices

Q: What are 3 things that you would tell an investor looking at your company?

A:

  1. zipMoney is the only consumer finance option in ANZ market that is mobile, 100% digital and entirely payments-oriented. We aren’t a plastic, credit card company.
  2. We are the only payments company who can originate a customer at checkout with any transaction dollar amount, low (zipPay) or high (zipMoney).
  3. Our proprietary credit, fraud and ID origination platform leverages more data than any of our peers – this drives the highest approval rates in the industry.

Q: Where do you see your company in 5 years time?

A: As I gaze into the crystal ball, we would love to see the following:

  1. Zip on parity with Visa and Mastercard but offering a very different value-proposition, be that purchasing power and payment flexiblity. So in short, Zip at every checkout
  2. A financial services brand that is synonymous with millenials, digitally-savvy offering simple, smart and financially responsible payment and credit products
  3. Pocketbook and Zip amalgamated into one Millenibank

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