Zip (ASX:Z1P) share price lower despite savings and crypto products update

Zip’s shares are on the move on Tuesday…

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The Zip Co Ltd (ASX: Z1P) share price is trading lower ahead of its Retail Investor Day event.

At the time of writing, the buy now pay later (BNPL) provider’s shares are down 2% to $6.89.

This means the Zip share price is now down almost 19% over the last six months.

Why is the Zip share price dropping today?

The weakness in the Zip share price today may have less to do with what was included in its presentation and more to do with what was not included in it.

Zip’s presentation provided the market with a lot of promising product updates, but didn’t give an update on its performance so far in FY 2022.

Given how there has been speculation that its rebrand has slowed momentum in the US, investors may have been hoping that these concerns were eased with a strong update today.

What was in the presentation?

Today’s presentation revealed a number of products that Zip is hoping will drive growth in the coming years.

This includes following the lead of rival Afterpay Ltd (ASX: APT) by offering savings accounts to its users. These accounts also appear to offer users the ability to access their pay ahead of time.

In addition, the company presented its cryptocurrency offering, which will allow users to buy, hold, sell, and even pay with crypto. Users will also be able to earn crypto rewards from purchases. There are cash rewards on offer for users that are not interested in cryptocurrencies.

Management also spoke about its global market opportunity. It highlights that the US market remains its highest priority and is forecasting strong growth in the BNPL market.

It estimates that the BNPL market currently accounts for 1.6% of the $5.2 trillion US retail market. However, it is forecasting this to grow to 4.5% in 2024.

Combined with growth in other markets, management believes this leaves Zip well-positioned to deliver material growth in the future.

Should you invest $1,000 in Zip right now?

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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