Zip share price dips amid Apple's BNPL US launch

A new global tech giant has entered the BNPL arena.

Key points
  • The Zip share price is down 0.9% right now, trading at 52.5 cents 
  • Its slump comes on the back of the launch of Apple Pay Later in the United States overnight
  • Zip's NASDAQ-listed BNPL peer Affirm saw its stock tumble 7% amid the product's reveal

The Zip Co Ltd (ASX: ZIP) share price is sliding on Wednesday. It comes as Aussie investors get the chance to react to the United States launch of Apple Inc (NASDAQ: AAPL)'s buy now, pay later (BNPL) offering overnight.

The Zip share price is currently trading at 52.5 cents – a 0.94% fall on its previous close.

For comparison, the All Ordinaries Index (ASX: XAO) is up 0.17% at the time of writing. Meanwhile, shares in Afterpay owner Block Inc (ASX: SQ2) are gaining 0.06%.

That's a far better performance than industry peer Affirm Holdings Inc (NASDAQ: AFRM) put on overnight. Its share price plunged 7% while that of Apple dipped 0.4%.

So, what exactly went down in the BNPL arena last night? Let's take a look.

woman thing about her payment

Image source: Getty Images

Apple launches Pay Later in US

The Zip share price is in the red today amid the launch of Apple Pay Later in the world's biggest economy.

Right now, a pre-release version of the BNPL product has been made available to select users, with plans to roll the product out to all eligible users in place.

The BNPL offering will work a lot like those we already know. Purchases can be split into four payments and spread over six weeks, with no interest or fees charged.

Users can apply to receive loans of between US$50 and US$1,000. They can then use Apple Pay Later to pay for online and in-app purchases with any merchant that accepts Apple Pay.

The BNPL product is enabled through the Mastercard Instillments program. Goldman Sachs is the issuer of the Mastercard payment credential used to complete purchases.  

Zip share price snapshot

The Zip share price has continued to tumble in 2023.

The stock is currently down 5% year to date. It's also fallen 66% since this time last year.

Comparatively, the All Ords has risen 1% since the start of the year and has fallen 7% over the last 12 months.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Affirm, Apple, Block, Goldman Sachs Group, Mastercard, and Zip Co. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $370 calls on Mastercard, long March 2023 $120 calls on Apple, short January 2025 $380 calls on Mastercard, and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended Block. The Motley Fool Australia has recommended Apple and Mastercard. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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