Afterpay buy now pay later rival Zip favoured by investor Philip King of Regal

Shares in Afterpay Touch have doubled in the past 12 months as Millennials lap up its buy now, pay later solution to spending and now some investors are hoping its major rival, Westpac-backed payment provider Zip Co, can follow that lead.

Regal Funds Management chief investment officer Philip King describes Zip as a “high-growth company that is in the sweet spot of moving from start-up losses to very high earnings growth”. Regal holds 6.4 per cent of Zip’s shares, which makes it the third largest shareholder after the company’s co-founder and chief executive Larry Diamond and Westpac.

The renowned fund manager used to own Afterpay, but now prefers Zip on valuation grounds.

Zip shares have gained 30 per cent in the past year to give it a market capitalisation of $359 million. That is about 10 per cent of Afterpay’s.

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Source: Afterpay buy now pay later rival Zip favoured by investor Philip King of Regal