The Zip Co Ltd (ASX: ZIP) share price has started the week in the red.
In afternoon trade, the buy now pay later (BNPL) provider's shares are down 1.5% to 65 cents.
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Why is the Zip share price falling?
The Zip share price is under pressure today despite there being no news out of the BNPL provider.
However, it is worth noting that both the financials and tech sectors are under pressure today, which could be weighing on its shares.
For example, the S&P/ASX 200 Financials index is down 1.2% this afternoon and the S&P/ASX All technology Index is down 0.9%.
Anything else?
It's possible that some commentary from Westpac Banking Corp (ASX: WBC) CEO Peter King could be putting pressure on the Zip share price.
King spoke cautiously about the economic environment and consumer spending. He said:
We are not yet seeing increases in hardship or stressed assets. Many customers built up savings during the past two years and 68% remain ahead on their mortgage repayments. However, it is inevitable that the impact of higher rates will be felt, including when borrowers' low fixed-rate loans are rolled over.
In Australia, consumer spending is resilient but as higher rates bite, we expect the heat to come out of the economy and inflation pressures to ease. Small business is one sector we are watching closely as consumption slows. Housing prices have fallen in recent months and this will continue into 2023. Credit growth is expected to ease. GDP growth will slow and unemployment will rise. These will be necessary outcomes if we are to lower inflation.
Whether this impacts spending on Zip's platform, only time will tell.
