The Zip Co Ltd (ASX: Z1P) share price is on watch today after the BNPL business announced a partnership with Microsoft Corporation (NASDAQ: MSFT).
Partnership with Microsoft
Zip has announced that it has entered into an agreement with Microsoft to integrate Zip technology into the shopping experiences within Microsoft Edge, starting with the US market. The buy now, pay later business pointed out that there are more than 1.3 billion devices running Windows 10.
Management said the new Zip functionality is being tested during the fourth quarter and could launch as early as November 2021.
The Zip US co-CEO Brad Lindenberg said:
“Zip provides customers with a transparent, digital payment option, and we are excited to integrate with the shopping experience in Microsoft Edge. Microsoft Edge is a web browser that is built for shopping, and Zip is built for consumers looking for flexible payment options.
As a way to explain its appeal, Zip said it’s a “pioneer of innovation and the pay-anywhere model, allowing US customers to use its pay-in-four product at any retailer, either online or in-store through its app and virtual card functionality.
How important could this be for the Zip share price?
Zip didn’t give any financial numbers about this update, but it did decide to put this announcement as ‘market sensitive’, so it seems to think it could be a big deal.
There are millions of Microsoft Edge users, so only time will tell how much exposure and benefit Zip gets with this. Will it be an exclusive arrangement? Or will there be a selection of BNPL providers that are on offer? We will have to wait and see.
Since the peak in February 2021, the Zip share price has halved. I’m not sure if Zip is worth looking at. It’s demonstrating a lot of growth, but it is also seeing higher expenses as well.
Zip continues to grow its business organically, like this Microsoft partnership, as well as making acquisitions. It could be one to watch, though there are other ASX growth shares I have my eyes on.
