Could Stripe Partnership Push Zip Co (ASX:ZIP) Toward a Stronger US Market Position?

• On October 23, 2025, Zip Co Limited announced an expanded partnership with Stripe, enabling U.S. merchants to activate Zip’s buy-now-pay-later solution through Stripe’s optimized checkout interfaces, including a no-code setup via the Stripe Dashboard.
• This partnership positions Zip to reach a broader segment of financially underserved consumers while helping U.S. merchants enhance conversion rates through embedded installment payment options.
• We’ll look at how the integration with Stripe’s streamlined checkout could strengthen Zip Co’s U.S. presence and overall growth trajectory.

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Zip Co Investment Narrative Recap

To be a Zip Co shareholder, you’d need to believe in the company’s ability to scale its buy-now-pay-later platform through rapid partnerships and digital innovation, especially in the key U.S. market. The expanded partnership with Stripe could accelerate U.S. adoption by making Zip’s solution effortless for thousands of merchants to activate, directly supporting the short-term catalyst of distribution growth; however, it does not materially reduce Zip’s exposure to intensifying competition and ongoing margin pressure in that region.

One closely related announcement worth noting is the August 2025 integration with Google Pay, which brought Zip’s installment payments to Chrome users. Like the Stripe deal, this initiative is central to Zip’s strategy of embedding its offering within widely used e-commerce channels, seeking to boost transaction volumes and merchant engagement, key factors in the company’s growth outlook.

But, in contrast to these promising integrations, investors should be aware that Zip’s reliance on lower-margin U.S. business could still…

Read the full narrative on Zip Co (it's free!)

Zip Co's narrative projects A$1.7 billion revenue and A$216.9 million earnings by 2028. This requires 17.4% yearly revenue growth and a A$137 million earnings increase from A$79.9 million today.

Uncover how Zip Co's forecasts yield a A$5.10 fair value, a 41% upside to its current price.

Exploring Other Perspectives

Seven distinct fair value estimates from the Simply Wall St Community put Zip Co between A$2.27 and A$5.10 per share, revealing broad differences among retail investors. While distribution partnerships are expanding, sustained competition and ongoing margin compression still shape the direction of Zip Co’s longer-term business performance.

Explore 7 other fair value estimates on Zip Co - why the stock might be worth 37% less than the current price!

Build Your Own Zip Co Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Zip Co research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Zip Co research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Zip Co's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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