Zip shares have surged 31% since market close on 10 November to the current price of 82 cents per share. For perspective, the S&P/ASX 200 Index (ASX: XJO) has climbed 2.6% in the same time frame.

So what is going on with this ASX buy now, pay later (BNPL) share?

What's happening with Zip?

Zip shares soared 18% on 11 November alone. Investors bought up Zip shares amid general sector strength.

This followed an incredible night on US markets, where the S&P 500 Index (SP: .INX) lifted 4.7% and the NASDAQ-100 (NASDAQ: NDX) soared 7.5% on better-than-expected inflation data.

Zip shares surged 12% on Wednesday and are currently up a further 4.5% today.

A positive business update from fellow BNPL share Sezzle Inc (ASX: SZL) may have boosted investor sentiment in the Zip share price on Wednesday. Sezzle reported it is making significant progress towards profitability.

Zip's over-the-counter market listing in the US (OTCMKTS: ZIZTF) soared 17% to 55 US cents overnight.

US retail sales lifted more than expected in October, Reuters reported today. This could be providing Zip shareholders with confidence today, given Zip's BNPL solution can be used for in-store payments.

Zip CEO and co-founder Larry Diamond moved to the US last month to take advantage of "significant opportunity" for the company in America. Diamond said:

It is important to be there to demonstrate what we have done in Australia. There is still a significant opportunity for fintech in the US, as US banks are asleep at the wheel.

Diamond also said in October he believes Zip can be the next Commonwealth Bank of Australia (ASX: CBA). He said there is "no reason why deposits and mortgages can't be inside Zip, if customers trust us".

Zip share price snapshot

The Zip share price has descended 86% in the past year, while it has fallen 81% in the year to date.

In comparison, the ASX 200 has shed more than 3% in the past year.

Zip has a market capitalisation of around $554 million based on the current share price.

The post Boom! Why has the Zip share price soared 31% in a week? appeared first on The Motley Fool Australia.