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Tyro Payments Ltd vs Zip shares
If you're eyeing the payments sector, Tyro Payments Ltd (ASX: TYR) and Zip Co Ltd (ASX: ZIP) are two major players you might have on your radar. Both are Aussie fintech companies making waves in digital transactions, but they take distinctly different approaches and have some big differences in their fundamentals. So, which payments stock is the better buy right now?
The case for Tyro Payments
Tyro Payments is a homegrown fintech that specialises in providing EFTPOS, business lending, and banking solutions, focusing largely on small to medium-sized businesses. According to its company profile, Tyro supports more than 76,000 Australian businesses, mainly serving the hospitality, retail, and healthcare sectors, and is gradually expanding into trades, accommodation, and services.
Looking at Tyro's latest figures, a few things jump out:
- It has a market cap of $364.73 million, making it much smaller than some sector peers.
- Its P/E ratio sits at 17.39, which is lower than Zip's.
- Tyro's earnings per share are $0.039.
- There's no dividend on offer at the moment, and franking data isn't available for this article.
- Its Year To Date (YTD) return is -31.8%, signalling it's had a rough year so far on the market.
While Tyro doesn't pay a dividend and isn't enjoying much momentum at the moment, its core business of merchant payment processing is critical to many Aussie SMEs and arguably less volatile than consumer-focused lending.
The case for Zip
Zip is best known for its Buy Now, Pay Later (BNPL) services, like Zip Pay and Zip Money. As of its latest public description, Zip is active across 12 countries, including Australia, New Zealand, and the United States. The company aims to disrupt traditional credit card models by offering flexible, interest-free payment solutions to consumers and merchants.
Key points from Zip's fundamentals:
- Market cap stands at a robust $2.79 billion.
- Its P/E ratio is 24.50, higher than Tyro's.
- Earnings per share are $0.091, noticeably higher than Tyro's.
- Zip doesn't pay a dividend either, so income investors will need to look elsewhere.
- The YTD return is -32.5%, so it has seen similar market pain as Tyro this year.
Zip's BNPL model has found global traction but also faces macro headwinds and regulatory scrutiny. Its focus is on consumers and merchants who want alternatives to credit cards, making it a different beast to Tyro's merchant-centric, bank-like model.
Valuation comparison
Tyro and Zip both trade on fundamentals that suggest they're growth-oriented fintechs, but there are meaningful differences in valuation and scale.
| Metric | Tyro Payments | Zip |
|---|---|---|
| Market Cap | $364.73 million | $2.79 billion |
| P/E Ratio | 17.39 | 24.50 |
| Earnings per Share | $0.039 | $0.091 |
| Dividend Yield | 0.00% | 0.00% |
| Year To Date Return | -31.8% | -32.5% |
Note: Both companies list positive EPS figures, but their respective P/E ratios may be calculated using different measures of earnings (such as underlying or adjusted profit), which can explain why their P/E ratios and EPS numbers might not perfectly align on pure maths.
Neither company pays a dividend, so this is a straight-up growth story—no franking credits or yield to sway the decision. Zip's higher P/E ratio and much larger market cap point to higher market expectations, but also, perhaps, higher perceived risk or growth.
Recent share price performance
Share price performance has been on the struggling side for both companies this year, so it's not a story of momentum.
Comparing 25 August – 22 September 2026:
- Tyro's share price fell from $0.83 on 25 August 2026 to $0.69 on 22 September 2026, representing a drop of 16.9% over this period.
- Zip's share price fell from $2.66 on 25 August 2026 to $2.24 on 22 September 2026, a decrease of 15.8% across the same dates.
- Both have had a negative YTD return for 2026: Tyro at -31.8% and Zip at -32.5%.
Which is the better buy?
With both Tyro Payments Ltd and Zip languishing with negative returns in 2026 and neither paying a dividend, the decision comes down to business quality, growth potential, and valuation.
Personally, I'd lean toward Tyro Payments. Here's why: Tyro's lower P/E ratio suggests less frothy expectations from the market compared to Zip, so there may be less downside if sentiment stays cautious. Its business is deeply embedded with Australian merchants—a sticky and recurring revenue model. While Zip's international scope and higher EPS are attractive, the Buy Now, Pay Later sector faces increased competition and regulatory clouds, and Zip's higher valuation multiples reflect this more speculative trajectory.
Tyro is much smaller and arguably at an inflection point. If it can regain momentum, I think there's more recovery potential for share price upside. That said, both companies are high-risk, high-reward options in a sector subject to shifts in sentiment and disruptive innovation. Ultimately, my pick would be Tyro Payments for investors who prefer a merchant-driven, lower-expectation play in payments.
