Investing.com-- Shares of Zip rose sharply on Tuesday after the Australian buy now, pay later firm announced a A$50 million ($30 million) share buyback set to begin later in the month, coming just a month after it clocked strong interim earnings.

Zip Co Ltd (ASX: ZIP ) shares rallied as much as 20% to A$1.430, and were among the top gainers on the ASX 200 index, which added 1.7%. Zip also benefited from a broader rebound in Australian stocks, which were nursing three straight days of losses on concerns over heightened U.S. trade tariffs.

Zip said it will buy back as much as A$50 million worth of shares, although the actual figure could vary on several factors, including market conditions, the company said in a statement.

The buyback comes after Zip clocked strong cash earnings for the six months to December 31, amid higher transaction volumes and revenue.