The Zip Co Ltd (ASX: Z1P) share price is moving higher on Thursday. At the time of writing, shares are swapping hands for $7.34, up 5.45%.
This follows the buy now, pay later (BNPL) company announcing a new agreement with US-based tech giant Microsoft Corporation (NASDAQ: MSFT).
Image source: Getty Images
What's sending the Zip share price higher today?
Investors are bidding up shares in the second-largest BNPL company on the ASX on Thursday. This is on the back of an announcement that appears to have caught the attention of the market.
According to the release, Zip has entered into an agreement with the second-largest listed company on the planet by market capitalisation – Microsoft.
This agreement involves the integration of Zip's technology into the shopping experiences within Microsoft Edge. In turn, shoppers using the web browser will be able to use a digital payment option provided by Zip.
The integration into the company's web browser will begin rolling out in the United States first.
Clearly, the market is chuffed with the news as the Zip share price pushes higher. As noted in the release, the integration unlocks access to more than 1.3 billion devices running Windows 10.
Management commentary
Commenting on the news, Zip co-CEO Brad Lindenberg stated:
Zip provides customers with a transparent, digital payment option, and we are excited to integrate with the shopping experience in Microsoft Edge. Microsoft Edge is a web browser that is built for shopping, and Zip is built for consumers looking for flexible payment options.
The expansion to Microsoft's web browser follows news last week of Zip's entrance into the BNPL market in India. To make this possible, Zip made a strategic investment in leading Indian BNPL operator ZestMoney.
Company snapshot
Despite the recent announcements, the Zip share price is down around 2% over the past 6 months. However, year-to-date the company's shares have appreciated approximately 26% in value. As a result, Zip now holds a market capitalisation of $3.92 billion.
