The Zip Co Limited (ASX: Z1P) share price has rebounded today due to an announcement that Zip’s payment solution will soon be available throughout Big W stores.
About Zip Co
Zip Co provides customers with a revolving line of credit to finance their retail purchases with its brands of Zip Pay, Zip Money and Pocketbook. It is one of the largest “buy now, pay later” providers in Australia. Some of its largest clients include Bunnings Warehouse, Appliances Online, EB Games and Officeworks.
New Partnership
Zip Co announced this morning that their payment solution will go live in Big W stores, part of the Woolworths Group Ltd (ASX: WOW), in the first half of FY20.
This is another step in the right direction for Zip Co as they target the largest retailers in Australia, and it follows on from recent partnerships with Kmart and Kogan.com Ltd (ASX: KGN).
Zip CEO and Managing Director Larry Diamond said Zip will be a great fit for Big W customers.
“We are delighted to partner with another well-known brand in Big W,” he said. “We believe Zip will be a great fit for Big W, providing their customers with a better way to pay for their everyday products and purchases.”
Share Price Rebound
The Zip share price is up more than 2% in early trade following two negative days. The Zip share price fell 3.5% yesterday and 2% the day before after announcing that National Australia Bank Ltd (ASX: NAB) has been selected to arrange investor meetings in the hopes of refinancing Zip’s existing debt facility.
Is Zip A Buy?
While it’s good to see Zip picking up some large retailers like Kmart and Big W, I’m worried by the growing competition in the space and I’m not convinced that Zip will emerge as the dominant player in the industry.
I’d rather invest in one of the growing companies mentioned in the free report below.
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Disclosure: At the time of writing, Max does not own shares in any of the companies mentioned.
