Zip Mexico has closed
We would like to sincerely thank all of our customers and businesses for their incredible loyalty and support.
Zip Mexico has closed
We would like to sincerely thank all of our customers and businesses for their incredible loyalty and support.
Frequently Asked Questions
What if I have an active purchase?
Your account will remain active to be able to check your pending payment dates.
Any outstanding payments will need to be settled according to your normal payment schedules.
You can also choose to make prepayments on your plan by logging into Zip.co as normal.
Zip will continue to honor all payment plans that have been agreed upon for each of your active purchases.
Remember the importance of finalizing your purchases, so that it does not affect your credit history.
Why is Zip leaving the Mexican market?
- Zip's operating environment has changed significantly in recent months and as a result we have had to adapt our strategy and focus on the things we can control to accelerate our path to global profitability.
- In line with the strategic objectives outlined as part of our recent HY22 results update, Zip has undertaken a series of proactive steps to deliver with our investors. This process has involved a realignment of resources and priorities to support more efficient growth at the core of ANZ and across the Americas.
- The decision to close operations in Mexico supports our strategy that focuses on sustainable growth and obtaining group EBITDA profitability and positive cash flow for FY24.
When will it be effective?
- As of December 7, you will no longer be able to make any more purchases with your Zip account.
Is this a sign that the category is failing?
- Not at all. However, we see a change in the macroeconomic outlook that is undoubtedly affecting where companies, including Zip, will commit resources.
- We continue to see opportunities in the category, not just in Australia but globally. BNPL continues to be the fastest growing eCommerce payment option and is expected to grow +67% between 2021 and 2025.
- BNPL Australian market revenue is ~$817 million for FY2020-21 and have experienced annual revenue growth of 43.2%.
Is Zip Global going under?
- Not at all. We are taking proactive steps to ensure a profitable business in the near future and, as indicated in our latest result, we expect cash EBTDA to be positive as a group in 1H24.
- Our most recent fiscal 2022 results showed strong metrics including:
- Group revenue of $620.0m (57% up vs. last year)
- Transaction volume for the year of $8.7bn (57% up vs. last year)
- Transaction figures for the year 74.3 million (80% more than last year)
- The number of clients increased to 11.4 million (56% more than last year) - Merchants on the platform increased to 90.7k ( 77% vs. last year)
- Key enterprise merchants signed, including Best Buy and Bed, Bath and Beyond in the US and Qantas & eBay in Australia A strong cash transaction margin of 2.3%.