Millennials in Australia shifting towards smarter digital financial solutions: Larry Dom

By Jit Kumar

Zip CEO aims at expanding the firm’s global footprint, riding on the merger with Quadpay

Millennials in Australia are increasingly shunning traditional banking and financial products like credit cards for smarter digital alternatives, according to Larry Dom, the founder and CEO of buy now pay later darling Zip.

And Zip—which recently spelt out its global expansion aspirations through the acquisition of US fintech firm Quadpay—wants to take advantage of this behavioural shift of Australians for expanding its footprint in the space of interest-free digital micro-finance solutions, says Dom.

“One in five (Zip customers) are coming from the Gen X category… and the average age of the Zip customer now is close to 35, so it’s really on that cusp between older millennial and Gen X,” he said in a podcast interview with Switzer TV.

“Our view is that this aversion from the credit card, the stats in the states I read a couple of years ago was the penetration for credit cards in the under 35s is the lowest since the 1980s, and that’s parents who have potentially gone through the GFC (global financial crisis of 2008) and so these trends we see as absolutely continuing,” Dom said.

Zip, which already owns a 14% stake in QuadPay, plans to acquire the remaining 86% of QuadPay. And Dom believes this merger will give Zip a bigger space to play—not only across Australia and New Zealand, but also in the US, the world’s largest retail market, thus paving the way for its growth opportunities.

“The US is a very large market of five trillion dollars in retail and that doesn’t include all payments and you know more than 10% of that is is online, so you contrast that with Australia’s retail industry of just 300 billion and you know probably 10% of that is online and what we’re seeing here is you know one in ten customers are using buy now in some categories.

“So if we contrast that to the US 20 times the market size, it’s incredibly large. And even the players that are there who are a little bit ahead of us, some of the peers you know they might have 5 million customers, the quad pay team has what one-and-a-half million customers, so you can just see the opportunity there,” he said.

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