The Zip Co Ltd (ASX: Z1P) share price is storming higher today following the release of a new product offering. In early morning trade, the Zip share price is up 2.65% to $7.36. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.1% to 6,235.9 points.
Let's take a look at what Zip released to the market.
What's moving the Zip share price?
This morning the Zip share price is on the rise after the company announced it has launched its Tap & Zip product, which enables customers to make purchases anywhere accepting Visa.
The new offering is expected to promote Zip as a first-choice payment to customers over its competitors. This allows the company to expand into new spend categories and capitalise on instore payment opportunities.
Projection shows that merchants could see increased sales volumes due to customers having greater access to Zip's payment facilities. In-turn, customers will have an array of options using Zip Pay's instore solutions.
According to RFI Research, just 13% of stores in Australia accept buy now, pay later (BNPL) options, revealing a large untapped customer market.
In addition, studies indicate universally accepted tapping as being the preferred method of payment. Zip accounts for 24% of transactions occurring instore as compared with broader Australian retail data which sees 87% of payments instore.
Zip noted that this highlights a significant opportunity to grow its market share in the BNPL market.
What did the CEO say?
Zip co-founder and CEO, Mr Larry Diamond, commented on the on sector and the company's new product. He said:
BNPL has seen phenomenal growth over the last few years, as customers switched traditional forms of credit for flexible, digital alternatives. However, until now that growth has been restricted by a clunky instore checkout experience and limited acceptance.
As a customer-obsessed organisation, we are excited to announce Tap & Zip, which completely changes the game, enabling Zip to compete with the credit card at every checkout in Australia. Everywhere Australians can pay with a Visa contactless card, they'll now also be able to Tap & Zip, interest-free.
Partnership agreements
Furthermore, in addition to the new product release, Zip also announced it has partnered with Apple Inc's (NASDAQ: AAPL) Apple Pay and Alphabet Inc's (NASDAQ: GOOGL) (NASDAQ: GOOG) Google Pay. The new agreements with the Silicon Valley tech giants will allow Zip customers to use virtual wallets on Apple and Android products.
The collaboration between Apple and Google makes it easier for Zip customers to make payments on everyday items. Both platforms will be available to use for Zip payments from today.
