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    Best Buy Store Rollout Might Change The Case For Investing In Zip (ASX:ZIP)

    Simply Wall St·11/09/2026 17:25:39
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    • Zip Co Limited expanded its partnership with Best Buy across the United States, allowing eligible customers to use Zip’s flexible payment options in physical Best Buy stores through tap to pay in the Zip app. This extends the existing online offering to the checkout counter.
    • The rollout into bricks and mortar channels connects Zip Co’s 4.7 million active U.S. customers to more than 32,600 merchant partners. This points to higher everyday usage, as in store transactions already account for 30% of U.S. volume after a 61% year over year increase in First Quarter Fiscal Year 27.
    • We will now look at how Zip Co’s broader investment narrative could be affected by Best Buy’s nationwide rollout of in store flexible payments.
    Scan what this Best Buy rollout means for flexible payment adoption, then see how it compares with other potential consumer finance breakouts in our hand picked 14 high quality undiscovered gems.

    Zip Co Investment Narrative Recap

    To own Zip Co, you need to believe it can keep turning more flexible payments into repeat usage while holding credit quality and funding costs in check. The Best Buy rollout speaks directly to that first piece, as it leans into in-store behavior without needing heavy extra marketing. The short term swing factor still sits in whether transaction volume can scale without stressing the balance sheet.

    The biggest near term risk rests on credit losses and fraud control as products expand, alongside interest costs that are not yet comfortably covered by earnings. If the Best Buy rollout shifts mix toward in-store spending without straining underwriting or capital, it supports the analyst consensus Narrative on Simply Wall St around volume growth and improving margins. If not, the impact of this news is limited.

    The Best Buy partnership itself is the announcement that matters most for this story, because it links Zip Co’s 4.7 million active U.S. customers with more than 32,600 merchant partners in a single tap to pay experience. It speaks directly to the catalyst in the analyst consensus Narrative on Simply Wall St that points to embedded finance and merchant integrations as a key volume driver.

    For you as an investor, the question is whether this type of rollout can offset the live risks around regulatory scrutiny, fraud incidents and a funding mix that relies on higher risk borrowing. Execution on partnerships like Best Buy, Google Cloud and Stripe becomes the test of whether Zip Co can convert distribution reach into sustainable earnings while keeping bad debts and compliance costs under control.

    Zip Co's current analyst narrative points to A$2.1b revenue and A$271.6 million earnings by 2029, built on 17.0% yearly revenue growth and an earnings rise of about A$155 million from A$116.4 million today.

    Uncover why Zip Co's fair value indicates a 79% potential upside to its current price, which could narrow quickly.

    ASX:ZIP 1-Year Stock Price Chart
    ASX:ZIP 1-Year Stock Price Chart

    Exploring Other Perspectives

    One alternate view focuses on Zip Co’s funding costs rather than volume. On this reading, the Best Buy rollout only really matters if interest expense stays close to the 1.3% of TTV level that bullish analysts used when they projected A$2.3b revenue and A$360.7 million earnings by 2029. That is much more optimistic than the consensus A$2.1b and A$271.6 million path. You can treat this news as a prompt to compare these different funding assumptions and decide which version of Zip Co’s future you find more realistic, knowing all of those analyst narratives were built before this nationwide in store launch.

    Explore 5 other Zip Co fair value estimates, including one that suggests as much as 176% upside from the current price!

    The Verdict Is Yours

    Don't just follow the ticker. Dig into the data and build a conviction that's truly your own.

    Looking For More Investment Ideas Beyond Zip Co?

    Once you have a handle on Zip Co, it can help to compare its risk and reward profile with other opportunities that fit different objectives, from income to resilience to potential re rating stories.