While COVID-19 has caused major disruption to the retail sector, investors are happy with the performance of the ASX’s listed cohort of buy now, pay later stocks.

The latest competitor to get a share-price boost on the back of its April trading update was Zip Co (ASX:Z1P), which climbed by more than 10 per cent this morning.

It caps off a strong week for Zip, which has risen by more than 35 per cent since Monday. And since the peak of the market selloff in March, the move in Zip stock has been similar to the gains seen for other players in the space:

Tech: Sezzle rally continues, after trading update shows sales held up in April

Zip said monthly revenue in April came in at $15.1m, up by 86 per cent from April 2019.

The latest announcement marked the first monthly update from the company, but extrapolated from Q1 the result was in line with March quarter revenue which came in at $45m ($15m per month).

Customer numbers (2 million) and merchant numbers (23,100) were also both up by more than 50 per cent on a yearly basis.

The company said bad debts on its $1.2bn of receivables was tracking below 2 per cent, a figure which was “significantly outperforming the market”.

CEO Larry Diamond said the April trading result was partly a by-product of the company’s diversified revenue channels across online retail, household goods and everyday essential products.

“The start of May looks to be considerably stronger again relative to April, and we look forward to supporting our retail partners as social restrictions gradually ease and brick and mortar stores begin to re-open,” Diamond said.


In other ASX tech news today:

Tech platform DragonTail Systems (ASX:DTS) announced some business development news out of Canada, where Franchise Management Inc — its largest Pizza Hut franchisee customer in Canada — announced it would upgrade to DTS’s full Algo Platform for its store network.

The DragonTail product provides an AI-based solution to enhance delivery management for food outlets. The company added that “additional revenues from the upgrade will not be material, relative to the annual revenues of the company”. Shares edged lower by 4 percent in morning trade to 11.5c.