Zip Co’s revenue doubled in 2020/21, while the company was able to maintain what it claims is a revenue margin that leads the buy now pay later sector.

Zip included some full-year financial disclosures in a June quarter update yesterday. Revenue grew 107 per cent to A$126.7 million, with the biggest growth coming from the US, where revenue rose 280 per cent to $64.3 million.

Transaction value rose 116 per cent to $1.8 billion. Again, the US business was the driver of growth.

The US market is now the company’s biggest source of transaction value and revenue.

Zip claimed a market-leading margin, with revenue at 7.2 per cent of transaction value.

One negative was that the arrears rate in the Australian business rose from 1.3 per cent at the end of June last year to 1.8 per cent of receivables at the end of June 2021.

The company said it is “well placed to adjust our risk settings based on commercial strategies or external factors”.

At financial year end, Zip had 7.3 million customers, which is an increase of 87 per cent over 12 months, and 51,300 merchants on its platform (up 87 per cent over 12 months).

During the June quarter Zip acquired the remaining shares in European subsidiary Twisto Payments and Middle Eastern subsidiary Spotii Holdings. It launched businesses in Canada and Mexico.

It announced two new partnerships yesterday. Stripe merchants will be able to facilitate payments through Zip, while Zip will use Stripe’s technology for payments processing.

It also has an agreement with Adyen, which will see Zip built into the Adyen global platform.