The Afterpay Ltd (ASX: APT) share price was an impressive performer in 2019 and has started 2020 on a positive note.
In early afternoon trade the payments company's shares are up a sizeable 3% to $30.13.
Why is the Afterpay share price storming higher today?
Today's gain appears to be down to a combination of rebounding tech shares and the release of a regulatory update for its US operations.
Earlier this week Afterpay was one of a number of shares in the tech sector that came under pressure following a mini market meltdown.
Many of these shares have rebounded today after investors took advantage of their respective share price pullbacks.
What was the regulatory update?
Also supporting its shares on Thursday has been the release of a regulatory update on its US operations. This relates to its regulatory and credit licensing arrangements in the state of California.
According to the release, management notes that one of its rivals, Sezzle Inc (ASX: SZL) was recently denied a license application by the California Department of Business Oversight (DBO).
This caused concerns that Afterpay could suffer the same fate. However, this morning management eased concerns by revealing that it was successfully granted a California finance lender's license through the DBO in November. This license remains valid today.
Management advised that it applied for the license to facilitate its potential future expansion into other service offerings in the US that align with its business model.
It added: "Afterpay regularly engages in dialogue with federal and state regulators in the US, including the DBO, to ensure that regulators understand Afterpay's products and the Company's commitment to consumer protection and compliance with applicable laws."
Judging by its share price gain today, this news appears to have gone down very well with the market.
