The Zip Co Ltd (ASX: Z1P) share price is on the move on Thursday following the release of its annual general meeting update (AGM).
At the time of writing, the buy now pay later (BNPL) provider's shares are up 2% to $6.35.
Why is the Zip share price rising?
While the event was focused largely on what has happened over the last 12 months and Zip's plans for the future, the company also provided an update on recent trading. This appears to have gone down well with the market, giving the Zip share price a boost today.
Zip's Managing Director and CEO, Larry Diamond, revealed that the company's strong growth continued during October.
He commented: "October was Zip's highest TTV month on record processing over $770m in transaction volume for the month, which was a 94% increase on October 2020, with the Company now annualising at over $9b. Off the back of the rebrand, October delivered a 24% MoM increase which provides outstanding momentum entering the seasonal peak period."
Mr Diamond also spoke about recent partnerships that are expected to support the company's growth. One, that is currently in the works, is with a bank in the United States.
He said: "We secured partnerships with major names including Microsoft, PayU and Adyen and are live with global merchants such as Shein in multiple geographies."
"Zip is excited to share that we are in the process of establishing a financial partnership with Utah based WebBank to provide Zip the flexibility to drive further innovation in product and lending across the country," he added.
Finally, the Chief Executive provided an update on how Zip is responding to regulatory pressures in the BNPL market.
Mr Diamond explained: "As flagged earlier in the presentation, in the UK, Zip will take part in Treasury's process to map out a proportionate regulatory framework for BNPL. In the US, Zip has joined with other leading fintechs a new US industry group – the Financial Technology Association – to make the case for BNPL. Alongside this, Zip has also engaged with multiple regulators and Federal legislators to explain our business model and how we engage with US consumers."
All in all, investors appear pleased with the update and have been bidding the Zip share price higher today in response to it.
