Shares in ZipCo closed 7 per cent higher on Wednesday after suggestions in the market that the buy now, pay later provider has attracted takeover interest.
Some on Wednesday were pointing out the striking similarities with US-based rival Affirm.
Affirm has 3.5 times the revenue of Zip, but 20 times the market value at $US12.5bn, so an acquisition would be extremely accretive for the US player.
A view surfacing on Wednesday was it’s the logical buyer of the company led by former Barclays banker Cynthia Scott.
US revenue for Zip grew 36 per cent in the most recent quarter and Australia and New Zealand revenue grew 20 per cent, and the share price has still underperformed its US peer.
In the US, BNPL is more widely accepted than it is in Australia.
Affirm is the third largest player globally.
A Zip spokesperson said that the company had not received any takeover approaches.
Its market value is currently $855m.
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