Payments platform zipMoney (ASX:ZML) has teamed with Baby Bunting, Australia’s largest specialty retailer of baby products to offer zipMoney’s services for Baby Bunting customers.
Founded more than 30 years ago, Baby Bunting Group (ASX:BBN) operates as a multi-channel retailer with 40 stores across Australia, backed by a strong online presence.
zipMoney will now support Baby Bunting by offering flexible payment solutions for parents and parents-to-be at checkout.
The company will offer its ‘buy now, pay later’ point-of-sale and digital payment services, allowing customers to pay for purchases interest-free over 3, 6 or 12 months.
Last month, zipMoney agreed key terms with a ‘big 4’ Australian bank for the provision of a $200 million asset-backed securitisation warehouse program for its consumer receivables.
This is a transformative step forward for zipMoney as it creates the capacity to fund the growing demand for its services.
Importantly, the new bank financing will halve the weighted average cost of capital of zipMoney’s loan book, which directly contributes to the company’s bottom line.
The point-of-sale finance company recently reported a strong growth of 115% in its receivables portfolio, growing from $40.7 million at 30 June 2016 to over $87 million at 31 December 2016.
Last year, zipMoney’s oversubscribed $20.6 million equity raising (in June 2016) reflected a strong endorsement of the company’s service offering from the investment community.