The Zip Co Ltd (ASX: Z1P) share price has risen more than 5% in response to another exciting update.
Zip Co provides customers with a revolving line of credit to finance their retail purchase with its brands of Zip Pay, Zip Money and Pocketbook. It is one of the largest buy now, pay later providers in Australia. Some of its largest clients include Bunnings Warehouse, Appliances Online, EB Games and Officeworks.
What’s Going On With Zip Co?
The payments business has announced that it’s starting a partnership with Kmart Australia, one of Wesfarmers Ltd’s (ASX: WES) businesses, to offer Zip interest free payments to its customers.
Zip reminded investors that Kmart is an iconic brand in the Australian retail landscape and operates a national network of over 200 stores with a large online presence and revenue in excess of $6 billion.
The CEO and Managing Director of Zip, Larry Diamond, said: “We are delighted to partner with another truly significant Australian brand in Kmart. We believe Zip will be a great fit for Kmart, providing their customers with a better way to pay for their everyday products and purchases.”
Zip said that the relationship with Kmart continues to deliver on its strategic vision of partnering with Australia’s retailers and everyday products and spending.
Zip thinks that it will be live throughout the Kmart online network by the end of the month, being May 2019.
Kmart Director of Retail Australia & New Zealand John Gualtieri said: “We are excited to announce our new partnership with Zip, which gives our customers more flexibility and convenience when shopping with us online.”
Is Zip A Buy?
Signing up another large client to Zip’s service is clearly a good win, although I find it a little worrying that people would need to use a payment splitting system for Kmart, which is known for its very-cheap prices.
The Zip Co share price is up 250% in just 2019. It has done very well for its long term shareholders, but I think the buy now, pay later sector is too hot for me to consider investing right now. FOMO is not a great reason for buying at a high price.
I think the growth shares in the free report below could be better value than Zip today.
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