Westpac has poured $40 million into point-of-sale financing startup ZipMoney in a deal that is being billed as a coming-of-age for Austalian fintech.
Westpac’s investment, which includes an additional $8 million in performance-related options, follows record quarterly results for Zip which saw users reach 665,000 and more than $300 million in transaction volume processed on the platform.
The deal follows the announcement of a $260 million debt facility for ZipMoney from NAB in May.
The agreement with Westpac is part of a more intimate relationship, which will see the Australian bank integrate ZipMoney's financing tech across its retail network and explore the roll-out of business-to-business products currently under development.
Westpac group executive Gary Thursby comments: "Our strategic relationship with Zip is another example of Westpac's commitment to supporting leading Australian entrepreneurs and fintechs looking to bring great new capability to Australian consumers. Zip's real-time data analytics and proprietary platform offer customers seamless payment solutions. We look forward to working with Zip to develop these capabilities and offer Westpac customers more choice in the changing payments landscape."