Buy Now, Pay Later (BNPL) firm Zip Co shares surged by 23 per cent in response to its positive trading update for the December quarter.
The Afterpay rival reported an 88 per cent rise in quarterly revenue to $102 million, after a record quarterly transaction figure of $1.6 billion – up by 103 per cent.
In its ASX update, Zip described itself as a “true global BNPL leader” after closing the gap further between itself and main BNPL rival Afterpay this month.
“We are extremely pleased to deliver another exceptional set of numbers with the quarter really delivering a significant step change for the company, confirming our position as one of the fastest growing players in the sector,” Managing Director and CEO Larry Diamond said.
“We are extremely well placed to continue this momentum into 2021 as the global shift away from the broken credit card model continues.”
Australian retailers including Harvey Norman, Bing Lee, Officeworks and Catch.com.au all offer Zip as a payment method to customers.
Zip shares skyrocketed $1.38, or 23.1 per cent, to $7.36 on Thursday as investors reacted positively to the ASX update.
Zip stock has climbed 87 per cent from $3.94 to $7.36 over the last year.
Meanwhile, Afterpay remained the strongest player in the Australian market, surging by 327 per cent from $34.49 to $149 in the last 12 months.
