Startup zipMoney is the culmination of frustrating experiences by the founders Larry Diamond and Peter Gray. Traditionally, access to credit has been limited and painful, and requires customers to sit through a long, tedious process with an in-store salesperson, filling out forms, waiting for approval before receiving a credit card in the mail.
This forced the founders to come up with a better and faster solution to the payments and lending problem in Australia. They started zipMoney that focuses on providing a fresh approach that takes advantage of the dual power of finance and technology to painlessly deliver credit at the point of sale.
zipMoney is an online payments and consumer finance lending for eCommerce and retail. With zipMoney, the approval process can take as little as three minutes by assessing risk using software to access data directly from applicants’ bank accounts and other sources, including social media.
Once approved, customers are offered a revolving unsecured line of credit ranging between $500 and $10,000 to finance their online purchase. It has an average approved credit limit of between $1,000 and $2,000.
The startup, based in Sydney, was founded in 2013 as a ‘buy now, pay later’ finance product. It was founded by Larry Diamond and Peter Gray. Diamond is an ex-Macquarie and Deutsche Bank investment banker with vast experience in the payments scene.
zipMoney has just listed on the Australian Securities Exchange (ASX) yesterday after hitting $5 million in an oversubscribed reverse takeover of mineral exploration company Rubianna Resources.
Founder Larry Diamond acknowledged the potential problems associated with reverse listing, but found the overall experience to be positive and beneficial for his startup. He admitted that it’s difficult for startups to raise Series A rounds locally in Australia, so listing on the ASX is a good alternative to venture capital.
[Source] Sydney-based Fintech startup zipMoney makes ASX debut and enters high growth phase
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