Introduction

Australian fintech company Zip Co has announced its partnership with eBay to give small and medium sized businesses the opportunity to explore the newly launched Zip business. The announcement has surged the share prices as much as 10% 

What is Zip Business?

Zip Business is a platform that provides small merchants with the opportunity to purchase inventory, manage cash flow, and maintain marketing expenses on eBay Australia. The newly launched Zip business will be rolled out to 40,000 Australian SMEs that use eBay marketplace. 

With the huge announcement of the launch, the co-founder of Zip, Peter Gary said that the partnership of Zip and eBay will create a suite of products for SMEs and they are deeply committed to support the growth of these small businesses.

The partnership marks the launch of ‘Zip Business’ platform which will be funded through a debt facility by private US equity firm Victoria Park Capital Advisors. The fund is totalled to be $100 million. After the announcement, Zip’s shares jumped by nearly 10% to an all time high of 8.24$.

See Also:Neobank 86 400 partners with Australian buy-now-pay-later Zip Co

Zip- eBay Partnership

The partnership is coming at a time when there is an accelerated shift in the paradigm of online shopping due to coronavirus. The buy-now-pay-later firms have accelerated in terms of share prices and revenue. The partnership with eBay marks the first of an exciting upcoming series of integrated product rollouts to help small and medium sized businesses in Australia

The partnership distinguishes Zip from its peer BNPL competitors like AfterPay and ePayLater by indulging themselves into the lending business. 

Conclusion

The launch of Zip Business, in partnership with eBay, is a major step forward for small and medium-sized businesses in Australia, offering them a streamlined platform to manage inventory, cash flow, and marketing expenses. This collaboration comes at a crucial time for businesses navigating the impact of the COVID-19 pandemic and the rapidly changing landscape of online shopping. By securing a $100 million funding facility and establishing a tailored offering for SMEs, Zip is poised to provide significant value to its users. With this innovative move, Zip differentiates itself from its competitors in the Buy Now, Pay Later (BNPL) space and strengthens its presence in the lending market.

FAQs

  1. What is Zip Business? Zip Business is a new platform launched by Zip Co to help small and medium-sized enterprises (SMEs) manage inventory, cash flow, and marketing expenses on eBay Australia. It’s designed to support the growth of these businesses through financial and operational tools.
  2. How does the Zip and eBay partnership benefit small businesses? The partnership gives SMEs access to Zip’s financing options, allowing them to purchase inventory, manage cash flow, and keep up with marketing expenses—all integrated directly into the eBay marketplace. This streamlines business operations and enhances growth potential.
  3. How will the Zip Business platform be funded? The Zip Business platform will be funded through a $100 million debt facility provided by private US equity firm Victoria Park Capital Advisors. This funding ensures the platform’s ability to provide financial services to SMEs on eBay.
  4. What impact has the Zip-eBay partnership had on Zip Co’s share price? Following the announcement of the Zip Business platform and the partnership with eBay, Zip’s share prices surged by nearly 10%, reaching an all-time high of $8.24.
  5. How does Zip’s approach differentiate it from competitors like Afterpay? Unlike its BNPL competitors such as Afterpay and ePayLater, Zip is focusing on the lending business by providing financial solutions tailored to the needs of small businesses. This partnership with eBay allows Zip to integrate its products more directly into the operations of SMEs.
  6. What is the significance of this partnership in the current business climate? The partnership is timely, considering the accelerated shift in online shopping due to the COVID-19 pandemic. It provides SMEs with the financial tools and resources to adapt to changing market conditions, ensuring their long-term growth and success.