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Zip has announced its partnership with Visa, Apple and Google to allow many more small businesses to accept buy now, pay later (BNPL) in store. The company’s new ‘Tap & Zip’ product feature enables Zip Pay users to shop anywhere that accepts Visa1, ApplePay or Google Pay.
Unlike its major competitor Afterpay, which can only be used where a merchant has integrated the tool, Zip has developed a ‘shop anywhere’ feature in its app. This allows Zip to further capitalise on the significant instore payments opportunity by giving customers the option to purchase using Zip, just by tapping.
Currently, only 13 per cent of stores in Australia are able to accept BNPL options. Tap & Zip aims to spread the option to all stores.
“BNPL has seen phenomenal growth over the last few years, as customers switched traditional forms of credit for flexible, digital alternatives,” said Zip Co-founder and CEO Larry Diamond. “However, until now that growth has been restricted by a clunky instore checkout experience and limited acceptance.”
Ever since contactless payments were introduced in Australia in 2006, Australians have accepted tapping as the preferred shopping experience.
“We continuously hear from Zip customers that they want to use their digital wallet to pay for everyday purchases like groceries and petrol, or to buy products and services from merchants that don’t accept BNPL,” said Mr Diamond.
“As a customer-obsessed organisation, we are excited to announce Tap & Zip, which completely changes the game, enabling Zip to compete with the credit card at every checkout in Australia. Everywhere Australians can pay with a Visa contactless card, they’ll now also be able to Tap & Zip, interest-free.”
With 24 per cent of Zip transactions occur in physical stores compared with the broader Australian retail data, which sees approximately 87 per cent of payments instore – the opportunity to grow the BNPL share is significant.
“This is a huge day for Zip and the Australian retail sector. Tap & Zip is a new way for customers to pay that will dramatically increase instore transactions and conversion rates for thousands of retailers and merchants around the country, many of whom have been significantly impacted over the past year.”