The Zip Co Ltd (ASX: Z1P) share price rebounded from an early slump yesterday to close 0.9% higher at $3.29 on news of a new partnership with Big W.
What did Zip Co announce yesterday?
In its ASX update, Zip Co said the Woolworths Group Ltd (ASX: WOW) retailer would offer Zip interest-free payments to its customers going forward.
The company said "the relationship with Big W continues to deliver on its strategic vision of partnering with Australia's largest retailers, providing consumers with flexibility and convenience in how they choose to pay for their everyday products while expanding the network of acceptance for Zip's growing customer base".
Zip said it anticipates its service to be live with Big W within the first half of FY2020.
Is it enough to catch up with Afterpay?
While yesterday morning's announcement is a solid boost for Zip's ongoing expansion, the company is still struggling to make up ground on incumbent "buy now, pay later" provider, Afterpay Touch Group Ltd (ASX: APT).
The Afterpay share price is up 120% so far this year following a strong start to its United States expansion and decent underlying sales volume growth back here in Australia.
However, several recent events including the recent Senate inquiry and ongoing investigation into its financial crime compliance has meant the Zip share price has outperformed that of Afterpay, climbing 190% so far this year.
If Zip can continue to partner with some of Australia's major retailers and demonstrate organic sales volume growth, it may make up some ground on Afterpay's market share.
Are there any other competitors on the market?
While Zip and Afterpay remain the two biggest listed players here in Australia, Sezzle Ltd (ASX: SZL) made its debut on the ASX on Tuesday and saw its share price double on its first day of trade.
With an initial public offering (IPO) price of $1.22 per share, Sezzle is currently trading at $2.50 per share but slid 8% on the ASX yesterday as investors try to find an appropriate valuation for the latest "buy now, pay later" startup on the market.
