The Zip Co Ltd (ASX: ZIP) share price is almost 6% in the red today amid weakness in the Buy Now Pay Later (BNPL) sector.
Zip shares are currently swapping hands at 44.7 cents apiece, a 5.89% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 1.04% at the time of writing.
So what is going on with the Zip share price today?
Zip share price falls
Zip shares are falling despite a report on ABC's 7.30 revealing Australians have doubled spending on BNPL companies.
However, news also emerged federal Finance Minister Stephen Jones has plans to introduce legislation to regulate the industry within a year. He told the ABC:
Whatever you do in the financial services space, there's big voices with deep pockets.
I don't want to have an argument about whether this is credit or not, it clearly is.
The publication released figures showing Australians spent $11.9 billion on BNPL services in the 2020-2021 financial year. Out of 1,746 people surveyed, 38% have used a BNPL company.
The Zip share price may be falling today, but it is not alone. Sezzle Inc (ASX: SZL) shares are down 3.7%, while Block Inc (ASX: SQ2) shares are descending nearly 7%. Meantime, the S&P ASX All Technology Index (ASX: XTX) is 3.79% in the red today.
US BNPL shares also had a tough time in markets overnight, with Affirm Holdings Inc (NASDAQ: AFRM) plummeting 9.52% and Block Inc (NYSE: SQ) shares tumbling 5.5%.
The Nasdaq-100 Index fell 3.09%, while the S&P 500 Index slid 2.01% and the Dow Jones Industrial Average dropped 1.56%. Investors in the United States reacted to poor consumer confidence data and recession fears, Reuters reported.
Zip share price snapshot
The Zip share price has plunged more than 94% in the past year, diving almost 90% year to date.
For perspective, the benchmark ASX 200 Index has shed nearly 9% in a year.
Zip has a market capitalisation of about $311 million based on the current share price.
