The S&P/ASX 200 (ASX: XJO) finished flat on Tuesday, with gains in the IT sector, which was 2.2% higher, not enough to offset weakness across cyclical businesses including energy, down 0.7%, and utilities, down 1.1%.
ASX 200 chart
Zip share price soars
The standout by far was buy now, pay later firm Zip Co Ltd (ASX: Z1P), which jumped 16.9% after a stunning quarterly update. The company reported an 80% increase in revenue for the quarter, jumping to $114.4 million on the back of another 114% increase in transaction volumes through its platform to reach $1.6 billion.
The US business has nearly overtaken Australia when it comes to revenue contribution, with Quadpay seeing 188% growth in revenue and a 234% increase in transactions. Australian volumes were up a more ‘modest’ 61%. Bad debts also reduced from 1.93% to 1.78% of its loan book in a positive sign for shareholders.
BNPL in the green
Zip wasn’t the only BNPL company that charged higher on Tuesday. Afterpay Ltd (ASX: APT) finished the day with a 3.1% gain, while Sezzle Inc (ASX: SZL) and Splitit Ltd (ASX: SPT) both jumped more than 8%.
Along with positive sentiment towards the sector, the Splitit share price was boosted by a new global partnership with UnionPay International, part of China UnionPay, the provider of bank card services and a major card scheme in mainland China.
Under the partnership, UnionPay will be integrating Splitit to make it available to its network. This will give UnionPay cardholders and merchants accepting UnionPay the opportunity to utilise Splitit’s instalment payments product.
Business confidence on the up
Sticking with the theme of good news, National Australia Bank Ltd’s (ASX: NAB) Business Confidence survey hit a record of 25 points, and so it should.
Large businesses are flushed with cash following 2020’s JobKeeper support and capital raisings, which when combined with near-zero borrowing rates may represent the best conditions in decades.
Looking ahead, the ASX 200 is poised to rise 0.3% when the market opens on Wednesday. ASX tech shares will be on watch after the tech-focused Nasdaq index posted a 1.1% gain overnight.
