Zip shares shoot higher on breakthrough Amazon deal

The news sent Zip shares soaring to a high of $4.27 in early trade and by mid-afternoon they were trading 17 per cent higher at $4.015.


Zip shares hit a record high of $5.53 last month but have fallen sharply in recent weeks along with other high-profile tech stocks.

Zip confirmed that both its buy now, pay later service, Zip Pay, and its personal loan service, Zip Money, will be available.

Amazon declined to say whether it will team up with other instalment payment services here or in the far larger US market, which has been considered a no-go zone for players like Afterpay Touch.

Analysts like Goldman Sachs have excluded Amazon’s online market share in the US and UK from Afterpay’s addressable market opportunity on the grounds that the retail giant was expected to eschew instalment payment providers in favour of its internal offering.

Zip said it expects to be live on today.

Tech stocks like Zip and Afterpay have fallen significantly since hitting record highs last month. A recent research report from UBS poured cold water on “optimistic” expectations of Afterpay’s future market share in the US.


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