Zip Co (Z1P) launches Tap & Zip, while AfterPay and Westpac link
Zip Co (Z1P) -1.39%
Announced the launch of Tap & Zip, a payment option that allows customers to use Zip payments at any store. Customers will add a virtual card to their Google or Apple wallets to then use at any terminal that accepts Visa to pay with the amount being added to their Zip balance. Tap & Zip aims to capture more instore purchases as well as sales at the 87% of Australian merchants Zip currently doesn’t partner with. Shares closed lower today despite the new product. The BNPL race remains tightly contested though Zip has progressed by leaps and bounds in the US following the Quadpay acquisition. Growth remains strong and Tap & Zip will attract a new customer.
The BNPL sector in general looks pretty good into the end of the year - seasonally the Christmas period is the strongest for growth across the players.
Zip Co (Z1P) Chart
Afterpay (APT) +4.51%/ Westpac (WBC) -1.44%
WBC has announced APT as its first partner on its new digital banking platform. WBC has commented that this will allow APT to provide Westpac transaction and savings account to be linked to APT accounts. While there were no terms around materiality, revenue share, the deal is interesting insofar as it shows how traditional banking is embracing fintech partnerships, although it does seem strange that WBC (shareholder in Z1P) has done the deal with APT. While this doesn’t appear to be exclusive, it is one of the first major partnerships for APT with a mainstream financial institution and importantly for them likely begins their march into receiving fees/revenues outside of merchants/late fees as they look to leverage their existing customer base and build engagement with consumers outside of pay in 4. We need to find out why Z1P did not do this deal and APT did – more on this when we can.
Afterpay (APT) Chart
