The Zip Co Ltd (ASX: Z1P) share price is rocketing higher this morning after striking a new deal with Amazon in Australia.
What did Zip announce today?
Zip said it has entered into a strategic agreement with Amazon Commercial Services Pty Ltd this morning.
Amazon Commercial Services Pty Ltd is the Australian operating company of Amazon.com, Inc. The agreement means Zip will be a payment option for customers using Amazon.com.au and Amazon's first "Australian instalment payment option".
The news has sent the Zip share price soaring higher in early trade, given the potential earnings boost for the company.
Zip CEO and Managing Director, Larry Diamond, hailed the deal as putting Zip "firmly on the main stage". He also added, "The agreement delivers a fantastic experience for customers who are looking to own the way they pay."
It's a big win for Zip, which can leverage off the partnership to expand its 1.5 million digital customer base.
What else could move the Zip share price this morning?
Zip will issue an Amazon affiliate with warrants to acquire up to 14,615,000 ordinary shares at an exercise price of $4.70 per share – 25% of the warrants will vest concurrently with Zip's entry into the strategic agreement. The remainder will be subject to vesting milestones based on processed volumes.
The Zip share price closed at $3.44 per share yesterday, having rocketed 212.73% higher since the start of January, and shares have already shot up by another 13% in early trade to $3.89 at time of writing.
Zip expects to be live on Amazon.com.au as of today.
Zip continues strong 2019 performance
This morning's announcement is the latest in a string of positives for the Aussie "buy now, pay later" group. Zip shares have been charging higher in 2019 amid strong earnings, more agreements and further acquisition news.
The Zip share price is currently trading at $3.89 per share with a market cap of $1.37 billion and will be one to watch today.
