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 $100 million. After the announcement, Zip’s shares jumped by nearly 10% to an all time high of 8.24$.
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.
Image Courtesy: Zip Media Toolkit