Why are Zip shares rising?
Australia’s second largest BNPL player has inked a new contract with Microsoft for its Edge application.
- Zip (ASX: Z1P) share price closed 1.3% higher on Thursday (30 September)
- The buy now pay later (BNPL) firm has entered into a new agreement with Microsoft’s Edge web browser
- Last week, the company acquired US$50 million of shares in Indian BNPL operator ZestMoney
- The stock has rallied over 10% in the last one week
- Keen to take advantage of Zip’s rising share price? Open an account with us to go long on the stock now.
Zip stock price: what’s the latest?
Zip shares rallied as much as 3.3% on Thursday, after it announced a new agreement with Microsoft.
The BNPL firm said it will begin integrating its technology into the shopping experiences within the Microsoft Edge web browser, beginning with a trial in the US market in Q4 of 2021.
A full launch could kick in from as early as November 2021, according to a press release.
‘Zip provides customers with a transparent, digital payment option, and we are excited to integrate with the shopping experience in Microsoft Edge,’ said Zip US Co-CEO Brad Lindenberg.
‘Microsoft Edge is a web browser that is built for shopping, and Zip is built for consumers looking for flexible payment options.’
Zip’s solutions will allow US customers to use its pay-in-four product at any retailer, either online or instore through its App and virtual card functionality.
Zip acquires shares in ZestMoney
The fintech company also experienced a surge in its stock price last week, after it agreed to make a strategic investment in ZestMoney, a leading Indian BNPL operator.
Zip will acquire a minority shareholding in ZestMoney by investing US$50 million to subscribe for Series C Preference Shares.
It will also increase its shareholding over time, with specific reserved matters requiring Zip approval and a board seat as part of the investment.
Founded in 2015, ZestMoney is one of the largest and fastest growing BNPL platforms in India with 11 million registered users, over 10,000 online merchants and a point of presence in over 75,000 physical stores.
Zip shares closed over 13% higher for the week, following the announcement.
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