Zip Co Ltd's stock surged 5.18% during Tuesday's intraday trading session, reflecting investor optimism around recent company developments.

The buy now, pay later provider recently launched its Pay in 2 product, which allows customers to split purchases into two installments over two weeks. The product showed strong pilot uptake, with most participants indicating they would use it again for routine expenses. Additionally, Zip Co extended its partnership with Stripe in the US, potentially increasing merchant checkout opportunities.

These developments come ahead of the company's upcoming H1 2026 results, scheduled for release later this week. Investors appear to be anticipating that the new product and expanded partnership could drive transaction volumes and revenue growth, particularly in the US market.