ASX buy now, pay later (BNPL) shares have exploded in popularity recently and the Zip Co Ltd (ASX: Z1P) share price is the fastest growing one in 2021.
Shares in Zip are up nearly 35% since the beginning of the year. The only other BNPL company with a market capitalisation above $500 million to even grow this year is Sezzle Inc (ASX: SZL). It's up almost 32% over the same time.
Let's take a look at some of the bigger stories that have rocketed the Zip share price.
What's sent the Zip share price higher?
In 2021, Zip's ventured to different parts of the globe. It's expansion into North America via QuadPay helped to drive a 103% increase in transaction volumes and an 88% increase in revenue in Q2.
40% of all Zip's revenue for the quarter was derived from its North American business. Also this year, Zip made expansions into Asia as well as Europe and the Middle East. The Zip share price rose on the days these updates were announced.
Domestically, Zip's been working to expand its reach into more retail settings. For example, Zip partnered with JB Hi-Fi Limited (ASX: JBH) earlier this year to make it easier for customers to pay with its product.
For the broader BNPL industry, there have been several stories that have affected Zip's share price. Certainly, Zip is not immune to anything that affects BNPLs generally.
This story sent BNPL shares tumbling, including Zip.
It should be noted while the Zip share price has performed admirably this year, it is 48% lower than its all-time peak of $14.53 in early 2021.
While Zip is the best BNPL performer of 2021, Afterpay has done nearly 3x better over 12 months. Afterpay is up 43% in that time while Zip has only grown 15%. It just goes to show the market can be a volatile and unpredictable beast.