Bad debts and arrears took a turn for the worse, in Australia, for Zip co over the third quarter.

Arrears climbed to 2.29 per cent in March 2022, up from 1.64 per cent at December 2021.

Net bad debts were 3.40 per cent in March from 2.83 per cent three months before.

Group quarterly revenue lifted 39 per cent (year on year) to $159 million while transaction volume for the quarter was $2.1 billion (up 27 per cent YoY).

Customer numbers increased to 11.4 million (up 78 per cent YoY), while merchants on the platform lifted to 86,200 (up 90 per cent YoY).

“In line with strategic objectives outlined as part of our recent HY22 results update, Zip has undertaken a series of proactive steps to reduce its global and people cost base,” CEO Larry Diamond said. 

On the people side these actions are expected to decrease global people costs by more than $30 million in FY23.