Zip (ASX:Z1P) share price jumps 9% after hitting $10 billion milestone in November

Zip's shares are jumping on Tuesday…

The Zip Co Ltd (ASX: Z1P) share price has been a very strong performer on Tuesday.

In morning trade, the buy now pay later (BNPL) provider's shares are up

One girl leapfrogs over her friend's back.

Image source: Getty Images

Why is the Zip share price rocketing higher?

The catalyst for the rise in the Zip share price today has been the release of an update on its performance in November.

As you might have guessed from the Zip share price performance, the company's strong growth continued last month.

According to the release, Zip delivered record monthly transaction volume of $906.5 million during November. This represents an increase of 52% or $310.5 million over the prior corresponding period.

Based on November's performance, the company's transaction volume is now annualising at over $10 billion.

What were the drivers of this growth?

The release explains that this result was driven by an 86% lift in transaction numbers to a record of 7.5 million and a 71% jump in customer numbers to 9.2 million.

In respect to its customer numbers, this comprises 5.5 million is the USA (up 92%), 2.9 million in the ANZ region (up 27%), 0.2 million in the UK (up 564%), and 0.6 million in Expansion markets. The latter will soon include the Singapore market, where Zip has signed an exclusive agreement with Singtel to support its launch and leverage the Singtel Dash App.

Zip's Managing Director and Global CEO, Larry Diamond, commented: "November was a very strong month for the Company, and shows the tremendous growth achieved since this time last year with many markets processing BNPL payments for the first time – the Company is now processing annualised volume of more than $10b. Zip now has one of the largest BNPL footprints geographically with the aim of servicing its global merchants and partners in a simple and easy format."

Zip share price underperformance

Mr Diamond also addressed the underperformance of the Zip share price this year. As I highlighted here, the company's shares were down 22% year to date to a 52-week low on Monday.

The CEO commented: "Management and the Board would also like to acknowledge the significant volatility in equity markets, the impact to technology and fintech valuations and is taking this very seriously. We enter CY 2022 with strong momentum, in a solid financial position, with continued focus on execution, unit economics and global synergies."

"We have bolstered the global executive team to better handle both regional and functional execution, and remain driven as ever to achieve the best long term outcomes for our customers, merchants and shareholders. A significant portion of the management team and the employees' assets and remuneration is tied to the share price, and feels these gyrations alongside our loyal investor base," he added.

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 ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on BNPL shares

A laughing man standing next to a woman holds out his arm to a payments machine to pay with his smartwatch
BNPL shares

Zip vs Block: Which ASX payments share is better?

See how Zip and Block stack up on value, growth, and momentum – and which payments share I’d buy right…

Read more »

Couple enjoying food at a restaurant.
BNPL shares

What would it take for Zip shares to double?

Could this fallen growth share double over the next few years? I run through the numbers.

Read more »

Woman looking at data on her laptop.
BNPL shares

Is the Zip share price a bargain at $2.09?

I look at the earnings forecasts to see how attractive the shares really are at this price.

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
BNPL shares

Zip shares crash another 11% this week: What is going on?

Here's what brokers expect next.

Read more »

A happy shopper with a wide mouthed smile holds multiple shopping bags up around her shoulders.
BNPL shares

Experts tip battered Zip shares to deliver over 90% returns

Zip’s battered share price could be hiding a much brighter future.

Read more »

A happy shopper with a wide mouthed smile holds multiple shopping bags up around her shoulders.
BNPL shares

Experts tip Afterpay owner Block shares to deliver over 50% returns

Block offers investors a compelling long-term fintech growth opportunity.

Read more »

Scared looking people on a rollercoaster ride representing volatility.
BNPL shares

Why Zip shares took investors on a wild ride in August

Zip shares made some big moves in August. But why?

Read more »

Woman with a concerned look on her face holding a credit card and smartphone.
BNPL shares

Is it time to get greedy with Zip shares?

The buy now, pay later provider has suffered several strong headwinds over the past 12 months.

Read more »