The Zip Co Ltd (ASX: Z1P) share price is on the move on Friday after the release of an announcement.
At the time of writing, the payments company's shares are up 3% to $5.32.
What did Zip announce?
This morning the buy now pay later provider announced a partnership with social media giant Facebook.
According to the release, the agreement will allow small and medium-sized Australian businesses to use Zip Business to pay for advertising on the global social platform.
The company notes that the service, which is currently in testing, will enable small businesses that are advertising on the platform to reach the millions of Australians now shopping online, drive sales, and invest in growth, without impacting their cash-flow.
Management believes the partnership is the next exciting step in the development of Zip Business. This follows a recent agreement with eBay Australia.
The full service will commence with a controlled, staged roll-out, starting with Facebook pre-paid advertisers.
Zip's Co-Founder and COO, Peter Gray, commented: "With 14 million Australians using Facebook every day, the social network is an increasingly important advertising channel for small businesses. Providing Zip as a payment option makes Facebook advertising even more accessible and valuable to business owners and helps smooth their cash-flow."
"Small businesses are a crucial part of the Australian economy, making up almost 98 percent of the business sector. For many of these businesses, cash-flow is a primary concern, and 92 percent of small businesses believe they would have generated more revenue in the previous year if their cash-flow was better."
"Partnering with Facebook is an important step not only in the expansion of Zip Business, but in helping small business owners to capitalise on recent growth in the ecommerce sector and to get ahead," he concluded.
This sentiment was echoed by Facebook Australia and New Zealand Director, Paul McCrory.
He said: "Small to medium businesses are the heartbeat of the Australian economy. When businesses succeed the entire community benefits. We are excited to launch the buy now pay later advertising payments integration, that will help businesses access capital to grow. This innovation, coming directly from Australia, holds great potential to ensure small business thrives."
