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Zip Co share price charges 7% higher on Kmart news

The market may have dropped lower this morning but that hasn’t stopped the Zip Co Ltd (ASX: Z1P) share price from charging higher.

In morning trade the payments company’s shares are up 7% to an all-time high of $3.93.

Why is the Zip Co share price at an all-time high?

Investors have been scrambling to get hold of the buy now, pay later platform provider’s shares after it announced a partnership with Wesfarmers Ltd (ASX: WES) subsidiary Kmart Australia.

The agreement will see Zip Co offer interest free payments to Kmart’s customers through its online store by the end of the month.

Zip Co’s chief executive officer and managing director, Larry Diamond, was very pleased with the partnership.

He said: “We are delighted to partner with another truly significant Australian brand in Kmart. We believe Zip will be a great fit for Kmart, providing their customers with a better way to pay for their everyday products and purchases.”

This sentiment was echoed by Kmart’s director of retail Australia & New Zealand, John Gualtieri.

Mr Gualtieri said: “At Kmart, we’re on a mission to make everyday living brighter for Australian families. Whether we’re creating on-trend products at everyday low-prices, extending opening hours to make shopping more convenient for customers or opening stores in new communities, we want to make shopping more accessible to more people.”

Adding: “This is why we are excited to announce our new partnership with Zip, which gives our customers more flexibility and convenience when shopping with us online.”

This isn’t the first buy now, pay later platform that is available on Kmart’s online shop. Late last year the company signed an agreement with Afterpay Touch Group Ltd (ASX: APT). Both platforms are also available on the online shop of fellow Wesfarmers subsidiary Target.

Today’s gain means the Zip Co share price has now risen a staggering 257% since the start of the year.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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