Tag Archives: Consumer Loans (NEC) (TRBC level 5)

UPDATE 1-buy-now-pay-later Australian Zip company to raise $ 307 million for expansion | Instant News

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April 14 (Reuters) – Australia’s buy-now-pay-later (BNPL) Zip Co said Wednesday it will raise A $ 400 million ($ 307.48 million) through senior unsecured conversion notes to fund its growth and expansion plans.

On Tuesday, the company BNPL reported record quarterly earnings and announced plans to expand into Canada and Southeast Asia.

“The additional capital from this offering will support the active pursuit of core and international growth opportunities,” said Chief Operating Officer Peter Gray in a statement.

The company BNPL, which allows users to pay for their purchases in multiple installments, has seen an explosion in transaction volume and active customers as the pandemic drastically changed consumer behavior, moving more towards the online space.

Zip, which saw transaction volumes more than double in the March quarter, took a strategic stake in Philippine company TendoPay and carried out a soft launch in Canada during the quarter in a bid to better compete with bigger rivals such as Afterpay.

Senior banknotes are expected to be listed on the Singapore exchange, Zip added.

$ 1 = 1,3009 Australian dollars Report by Sameer Manekar in Bengaluru; Edited by Rashmi Aich


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The Zip Australia report noted Q3 earnings growth, eyeing expansion in Canada and Asia | Instant News

* Record revenue, transaction volume, customer growth

* Took stake in BNPL Philippines in the third quarter

* Made initial launch in Canada in the third quarter

April 13 (Reuters) – Australia’s buy-now-pay-later (BNPL) Zip Co Ltd on Tuesday posted record revenue, transaction volume and customer growth in the third quarter and announced plans to expand into Canada and Southeast Asia, shipping shares. jumped by more than 11%.

The strong performance was driven by growth at Quadpay, its US unit, where subscribers, volume and revenue grew in the triple digits as competition with bigger rivals Afterpay, Klarna and Affirm in the world’s top economies heated up.

Zip, which has strengthened its international presence to better compete, took a strategic stake in the Philippine company TendoPay and did a soft launch in Canada during the quarter.

In December, Zip raised A $ 150 million in capital to fund its expansion in the United States, United Kingdom, and took shares in companies in the Middle East and Eastern Europe.

In the third quarter ending March, transaction volume more than doubled from a year earlier to A $ 1.6 billion ($ 1.22 billion), while revenues totaled A $ 114.4 million, up 80%.

Active subscribers totaled 6.4 million, supported by a 19% increase in the US from late December, while the number of traders on its platform stood at 45,300.

“3Q was a weak quarter on a seasonal basis, but at the current pace of current US business in particular and the growing customer and trader base at ANZ, regional expansion bodes well for 4Q21,” wrote RBC Capital Markets in a client note.

In Australia, net bad debt fell to 1.78% from 1.93% three months earlier. Zip does not provide numbers for the United States.

“Our US business has come to prominence again, affirming our position as truly one of the fastest growing global BNPL leaders,” said Zip Chief Executive Officer Larry Diamond.

The stock jumped as much as 11.2% to A $ 9.25, before easing some of that gain to trade 9% higher after an hour of trading. ($ 1 = 1.3130 Australian dollars) (Reported by Nikhil Kurian Nainan in Bengaluru; Edited by Subhranshu Sahu)


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PayPal is presenting a ‘buy now, pay later’ offer to crowded Australia | Instant News

SYDNEY (Reuters) – PayPal Holdings Inc will launch a “buy now, pay later” (BNPL) option in Australia this June, the US payments giant said on Wednesday, further pushing on Afterpay Ltd and others for shares in the fast-growing industry.

FILE PHOTOS: PayPal app logo visible on mobile in this illustrated photo October 16, 2017. REUTERS / Thomas White / Illustration / Photo File

So far PayPal’s new BNPL option has been rolled out in the United States and the UK where at the end of the December quarter it is said to have handled more than $ 750 million in transactions.

The US payments giant now plans to deliver interest-free “Pay in 4” services to its more than 9 million customers in Australia, where the fast-growing regulatory space is thinner than for other categories of consumer finance, while adoption is higher than for other markets.

The arrival of PayPal presents a serious new competitor to Afterpay and Zip Co Ltd, which leads the domestic market, as well as Klarna from Sweden which is supported by a small shareholding of the largest bank in Australia.

Andrew Toon, general manager of payments at PayPal Australia, told Reuters that the company had been “inundated” with requests from Australian merchants and businesses following the launch of the BNPL service overseas last year.

PayPal plans to take advantage of its long-term relationship with Australian merchants but is not looking to an exclusive arrangement that will strengthen other BNPL providers, Toon added.

The company’s initial announcement last year that it would join the BNPL sector raised concerns among investors and analysts that its deep network with retailers and lower merchant fees could eat into the company’s long-standing growth.

“The big question is whether (PayPal) is getting such additional sales in a potentially different customer base, or are they just taking a share of old shareholders,” said Steven Ng, co-founder and senior portfolio manager at Ophir Asset Management, which owns Stocks. afterpay.

Afterpay shares, which have been hit in recent weeks by the global tech selloff, were up more than 8%, while Zip was down 3.6% towards the end of the trading day.

“You shouldn’t underestimate the scale and power of the technology that Paypal has in competing with existing players,” said Ng, adding that the competition will see further innovation and BNPL take a bigger market share in the payments industry as a whole.

Reporting by Nikhil Kurian Nainan in Bengaluru and Byron Kaye in Sydney; Edited by Christopher Cushing


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Afterpay Australia explores global records as first-half sales double | Instant News

(Reuters) – Afterpay is exploring additional overseas listings amid growing US investor interest, Australia’s buy-now-pay-later said on Thursday after reporting first-half sales more than doubled.

Fintech Australia and its global competitors such as Klarna, Affirm and Sweden’s Zip Co have seen explosive growth since the pandemic locked in large parts of the world and made more people turn to online shopping.

Afterpay shares have gained more than 1,500% since March, establishing itself as the 12th most valuable company in Australia.

Afterpay also said it raised A $ 1.25 billion ($ 995 million) in convertible banknotes in a complex deal to buy Matrix Partners stock from its US business – which accounts for 43% of its sales. The United States is also a key growth market for the industry where it struggles with fast-growing Klarna.

Klarna, who is reported to be tapping into more private funding, posted his full-year results on Thursday evening.

Afterpay’s legal losses more than doubled to A $ 79.2 million as the strong growth of its UK business pushed the unit’s valuation higher and increased the value of put options held by other companies. Zip also posted a much bigger half-year loss after buying New York counterpart Quadpay.

While Afterpay’s gross transaction loss fell to 0.7% – indicating fewer customers skipping payments – margins also fell slightly to 2.2% from six months ago.

Transactions made through Afterpay totaled A $ 9.8 billion in the six months to December 31, double the A $ 4.8 billion processed last year, supported by strong holiday spending.

Active subscribers jumped 1.9 million to 13.1 million in the three months to December.

($ 1 = 1.2547 Australian dollars)

Reporting by Nikhil Kurian Nainan in Bengaluru; Edited by Forward Samuel


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UPDATE 1-Bradesco Brazil set aside $ 462 million for COVID-19 loan losses | Instant News

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SAO PAULO, October 28 (Reuters) – Brazilian lender Banco Bradesco SA reported a higher-than-expected third-quarter recurring net profit on Wednesday, despite a surge in loan loss provisions amid the coronavirus pandemic.

Brazil’s second-largest private sector lender posted net income of 5.031 billion reais ($ 894.56 million), about 15% above the consensus analyst forecast according to Refinitiv, but down 23.1% from a year earlier.

Bradesco set aside 5.588 billion reais for bad loans, up 67.5% from a year earlier, but down 37.1% from the previous quarter. That includes 2.6 billion reais in extraordinary provisions related to potential losses caused by the coronavirus crisis.

“The results show the first signs of returning to normality,” said Bradesco Chief Executive Octavio de Lazari in a statement.

As the bank provided a grace period of up to 180 days to help clients deal with the economic crisis stemming from the coronavirus pandemic, the 90-day default ratio fell 0.7 percentage points to 2.3%.

The bank said it was providing a loan grace period of up to 73 billion reais.

Its lending books rose only 0.5% during the quarter, mainly on consumer loans, even though Brazil is facing a recession and unemployment is at its highest level in eight years.

The bank also indicated it has taken some cost-cutting steps as it fell 5.7% from a year earlier, but rose during the quarter.

Return on equity was at 15.2%, recovering from the second quarter, when the bank decided to set aside extraordinary provisions to deal with the coronavirus pandemic.

$ 1 = 5,6240 reais Reported by Carolina Mandl; Edited by Leslie Adler and Sam Holmes


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