Zip Co Limited (ASX: ZIP) is an Australia-based digital financial services provider. The company offers point-of-sale credit and digital payment solutions.
Its operations span Australia, New Zealand and the United States. Zip connects millions of customers with a broad merchant network. The US business has become its main growth engine.
In 1H26, US TTV reached $6.3b, up 44.7%. US revenue rose 47.0% to $445.3m. Cash EBITDA climbed 69.6% to $115.8m. These figures show improving scale and operating leverage.
Zip’s expanding US BNPL operations are driving stronger transaction volumes and earnings growth. [Courtesy: Reuters]
Zip US BNPL Expansion Builds Scale
The US operation is expanding across customers, merchants and transaction activity. Zip reported 4.6m active US customers in 1H26. That represented 9.7% growth from 4.2m previously. Transactions increased 31.6% to 29.2m.
The merchant network also expanded 9.5% to 26.7k. Zip added enterprise merchants, including Temu, JD Sports and GOAT Group. More than 1,400 merchants joined through Stripe. In-store TTV increased 69% year on year. It represented 25% of US TTV.
The growth strategy is supported by several operational priorities:
- Zip is expanding its Pay-in-Z platform across the US customer base.
- Pay-in-2 became available to all customers in February 2026.
- Zip launched the AI-powered customer chatbot, Zia.
- The company is testing Money Coach for cash-flow management.
- Google Pay and Chrome integrations are widening payment access.
These initiatives aim to increase customer engagement and transaction frequency. They also support Zip BNPL’s growth strategy and US ambitions. The company sees substantial headroom in the American BNPL market. BNPL represented less than 2% of total US payments. Zip therefore sees a sizeable addressable opportunity.
Zip BNPL Profit Engine Uses Credit Discipline
Profitability depends on controlling losses while expanding customer numbers. Zip has focused heavily on credit decisioning and portfolio management. Its US models use 1.4b unique data points. These come from more than 13m first-party customer records. The company also uses 2,800 behavioural features.
Zip has underwritten US$23b across 177m transactions to date. This capability supports its goal of serving underserved consumers profitably. The company reported US cash EBITDA growth of 69.6% in 1H26.
Growth, Earnings And Future Opportunity
Zip’s broader financial performance also highlights its improving operating model. Group TTV reached $8.4b in 1H26. That represented growth of 34.1%. Total income increased 29.2% to $664.0m. Cash gross profit reached $314.3m, up 33.5%.
Cash EBITDA rose 85.6% to $124.3m. Statutory NPAT reached $52.4m, compared with $23.0m previously. Active customers increased 4.1% to 6.6m. Transactions rose 20.2% to 54.9m. These results demonstrate stronger earnings conversion.
Zip’s FY26 strategy remains centred on profitable US expansion. Management expects US TTV growth above 40% in USD terms. It also expects the US share of revenue to increase. The company is targeting a revenue margin of circa 8%.
Its FY26 Cash NTM target range stands at 3.8% – 4.2%. Zip also wants to improve revenue-to-cash EBITDA conversion. Funding optimisation remains another priority. These targets show the company is pursuing growth without abandoning profitability.
Zip’s credit technology supports disciplined growth across its expanding US BNPL customer base. [Courtesy: ZIP]
What It Means For Zip Investors
The US market now provides Zip with significant growth potential. FY26 results later showed this momentum continued at scale. US TTV increased 42.5% in USD terms.
US active customers reached 4.6m. Group cash EBITDA reached a record $268.9m. Statutory NPAT increased to $116.4m. The company also reported $16.7b in group TTV.
These figures strengthen the case for Zip’s transformation. However, credit losses, regulation and competition remain important risks. Investors should monitor margins and investment opportunities alongside customer growth.
Zip BNPL Growth Strategy US Enters Its Next Phase
Zip’s US expansion could support its next stage of earnings growth. The company is increasing reach across online and in-store channels. Its growing merchant base creates more opportunities for transaction-led revenue.
Stronger customer engagement could also lift repeat usage over time. Meanwhile, Zip’s focus on credit discipline remains important. The combination of scale, technology and disciplined funding can strengthen margins.
For investors, the key question is whether this momentum remains profitable. That will shape Zip’s longer-term position in the competitive US BNPL market. For more such insights, visit Colitco.com
Zip is building a stronger US BNPL franchise, combining customer growth, disciplined credit and rising earnings to create a scalable profit engine. Also Read: Charter Hall FY26 results: growth without the fee windfall
FAQs
Q1: What is driving Zip’s US BNPL expansion?
A1: US customer growth, merchant expansion and higher transactions are driving momentum. US TTV rose 44.7% to $6.3b in 1H26.
Q2: How profitable is Zip’s US business?
A2: US cash EBITDA increased 69.6% to $115.8m in 1H26. This indicates stronger operating leverage as volumes increase.
Q3: How many US customers does Zip have?
A3: Zip reported 4.6m active US customers during 1H26. The customer base increased 9.7% from 4.2m previously.
Q4: What are Zip’s key US growth targets?
A4: Zip expects US TTV growth above 40% in USD terms during FY26. Its Cash NTM target range is 3.8% – 4.2%.
Disclaimer
This article is for general information and news purposes only. It discusses Zip Co Limited (ASX: ZIP) and its US BNPL expansion using reported company information. It does not constitute financial advice, investment advice or a recommendation to buy or sell securities. Investors should conduct independent research and consider financial circumstances before making investment decisions.
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Luke Carlino is a seasoned Copywriter, Content Strategist, and Social Media Manager specialising in Mining, Finance, and Business journalism. With more than a decade of industry experience, he brings rigorous editorial standards and commercial acuity to every project.
