BNPL player Zip exits Singapore; terminates partnership with Singtel’s Dash

AUSTRALIAN buy now pay later (BNPL) company Zip has begun winding down its operations in Singapore, along with its tie-up with Singtel’s e-wallet Dash since Jun 20.

The e-wallet no longer lists Zip on its website, and the Zip and Dash tie-up web page calls up an error message. The termination of the partnership comes just 4 months after the announcement on Feb 10, or 1 full repayment BNPL cycle.

“Since our arrival in the market we have been overwhelmed by the positive response from both partners and customers. Whilst we see great potential and passionately believe in the viability of Singapore as a market for BNPL and Zip, we have made this difficult decision in order to reprioritise our resources to focus on delivering sustainable profitability in our core ANZ and US market,” said Zip in a statement to The Business TImes.

The winding down and termination of the tie-up comes as Australia Stock Exchange-listed BNPL players have taken a beating, with all trading down since the start of the year. Zip is down 88.1 per cent or A$3.82 at A$0.52 as of Jun 27, 2022.

“Zip’s operating environment has changed significantly in the last few months and as a result we have had to adapt our strategy and focus on the things we can control in order to accelerate our path to global profitability,” said Zip.

The departure of Zip follows the consolidation of the BNPL sector in Singapore, with Shopback acquiring Hoolah and Pace buying Rely. Authorities here are also looking to tighten regulations in the relatively-unregulated sector.

“We anticipate that Zip will cease operations by 20th July 2022. All partners and merchants have been notified. During our brief time in Singapore we have been impressed by the warm response from partners and customers alike. We thank them for their warm welcome," said Zip.