Buy now pay later provider Zip Co says its Australian operations will not be affected by the exit of global card processor Marqeta from the local market.
Marqeta, which insources card management and processing from third parties, announced last week that it was closing its Australian business with immediate effect.
However, a spokesperson for Zip indicated on Tuesday that the company’s outsourcing contract was with Marqeta’s US parent and that meant the service arrangements would continue to be met.
The Zip spokesperson said that Marqeta provides card management and processing for Zip’s Visa Tap to Pay card and single use cards.
Zip’s ASX-listed scrip closed up 1 cent to 58 cents.