‘We’re definitely not excited’: Zip Co CEO observes retail decline

The CEO of buy now, pay later firm Zip Co says they are beginning to see a declining sales in traditional bricks and mortar stores as the coronavirus continues to smash the retail sector.

“We’re definitely not excited about what we’re seeing out there both for our retailers and customers,” Zip Co CEO Larry Diamond tells Brooke Corte.

Buy Now, Pay Later firms have shaken up the Australian payments sector.

Companies like Afterpay and Zip became sharemarket darlings as credit card wary customers flocked to the platforms in droves.

However, nervous investors have been dumping their shares amid concerns the coronavirus could trigger a wave of defaults among their predominantly younger customer base.

Zip Money has seen roughly 75% of its value slashed over recent weeks but Diamond says he doesn’t worry about the share price.

“We very much take a long term view on the sector, and really the whole financial services sector has been sold off,

“We still believe the fundamentals of this sector are incredibly strong… the share price should correct itself over time.”

Click Play to hear Zip Co CEO Larry Diamond speak with Brooke Corte: