The Zip Co Ltd (ASX: Z1P) share price is starting the 2022 year in the red in what has been a mixed day for buy now, pay later (BNPL) shares.
Shares in the company are currently trading at $4.30 apiece, down 0.69% on the previous close. They rose as high as $4.37 in early trade but have also slumped as low as $4.21 during a rollercoaster day. For perspective, the S&P/ASX All Technology Index (ASX: XTX) is climbing 1.69%
Let's take a look at what may be impacting Zip today.
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What's going on with Zip?
The Zip share price is falling today but it is not the only such company suffering. Shares in Openpay Group Ltd (ASX: OPY) are also slumping 2.07% today.
Afterpay Ltd (ASX: APT) is slightly in the green, up 0.63% while Humm Group Ltd (ASX: HUM) is up 0.56%. Sezzle Inc's (ASX: SZL) stock is also trading 1.99% higher.
The US market told a similar story with a variety of movements among BNPL shares.
The Affirm Holdings Inc (NASDAQ: AFRM) share price fell 5.32% tp $95.21, while Paypal Holdings Inc (NASDAQ: PYPL) jumped 3.37% to $194.94.
Zip's start to the year is consistent with its share price movement for the majority of December, despite an early surge in the final month of the year.
The Zip share price raced ahead after the company provided a positive trading update in early December. Zip revealed its monthly transaction volume increased by $906.5 million, up 52% year on year.
In other non-price-sensitive news released by the company, Zip formed an agreement with travel industry technology company Sabre on December 9. The partnership enables Zip to integrate Sabre's global distribution system so that travel partners can accept Zip payments.
The company also appointed former Deliveroo CEO Levi Aron as the chief growth officer in the United States.
However, as the month progressed, the company's shares hit new lows. The share price dived on news the US Consumer Financial Protection Bureau had ordered Zip and other BNPL shares to provide it with the pros and cons of its offerings.
Zip share price snapshot
The Zip share price has slumped 23% in the past 12 months, falling around 11% in the past month.
In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned more than 13% in the past year.
Zip has a market capitalisation of nearly $2.5 billion based on the current share price.
