The Zip Co Ltd (ASX: Z1P) share price is lapping up the attention of investors today.
Heading into the afternoon, the buy now, pay later (BNPL) provider is the best performing company in the S&P/ASX 200 Index (ASX: XJO). In specific terms, shares in Zip are trading 10.69% higher to $5.28, bringing its price back to pre-December levels.
Let’s take a look at what might be moving the Zip share price on the ASX today.
Is Zip staging a comeback on the ASX?
No doubt Zip Co shareholders are rejoicing today as the company’s shares look set to cement its second consecutive day of rising more than 9%. Not even news of new payment system reforms made by Treasurer Josh Frydenberg has rained on Zip’s parade on Wednesday.
The $2.8 billion company is not alone in its prosperous session. It’s sharing the gains with other BNPL competitors, indicating the rally seems to be more sector-wide. Other ASX-listed payment companies enjoying a positive nudge today include Tyro Payments Ltd (ASX: TYR), Afterpay Ltd (ASX: APT), and EML Payments Ltd (ASX: EML).
The catalyst could be partially thanks to a good showing from US-listed tech and payments companies overnight. In a similar fashion, the likes of Affirm Holdings Inc (NASDAQ: AFRM), Square Inc (NYSE: SQ), and Paypal Holdings Inc (NASDAQ: PYPL) jumped 10.6%, 5.5%, and 3.3% respectively.
Point of difference
However, Zip is outperforming many other ASX-listed payments peers, so there might be more to it. The only company-specific news circulating on Wednesday is the group’s newest appointment. Former Deliveroo (LON: ROO) CEO Levi Aron has been appointed as chief growth officer of Quadpay (Zip’s US operations).
Commenting on the new addition, Zip US co-CEO Adam Ezra said:
Levi is a proven, entrepreneurial leader who will help drive our growth strategy and deliver exceptional value for our consumers, merchant partners, and shareholders.
Moreover, this news is on the back of the company’s November trading update, released yesterday. Shares in Zip launched higher on the ASX after the company reported an 86% increase in transaction numbers. Additionally, customers rose 71% to 9.2 million compared to the prior corresponding period.
Finally, the Zip share price has fallen 15% in the last month. Undoubtedly, shareholders will be hoping to see a turnaround in performance. Comparatively, the S&P/ASX 200 Index (ASX: XJO) is only down roughly 0.8% in the last month.