Zip an Australian BNPL company branches into contactless payments

By Leandra Monteiro

With Buy Now Pay Later (BNPL) companies surfacing all over the place, shoppers have been given the chance to opt-out of traditional payment methods and substitute for an interest-free credit option. This has pushed the BNPL industry a step ahead of a number of credit card companies.

Recently the BNPL providers have ventured into the contactless payment market, allowing customers to spend in-store wherever pay pass is accepted. For example, BNPL company, Zip, showcases this program with its Tap & Zip offering. Zip offers the same general service – later payback periods for immediate purchases – while also offering interest-free repayment schedules.

This partnership has been created with the purpose of approaching the newer generations with a fresh take on zero interest programs. By pairing contactless payment with a budget-conscious brand such as Zip, consumers get the sense that it will be geared towards their shopper interests.

While traditionally, credit card providers profit from users not paying their bills, BNPL has built a more sustainable and adaptive model for spending that shifts the fees to merchants. Many have turned to BNPL to space out their repayment periods for online purchases and now can do the same for in-store shopping.

Zip is further allowing customers to use their Tap & Zip plan at places beyond the world of retail. For instance, Tap & Zip can now be used at the petrol station, the car mechanic or even the dentist if they have chosen to accept BNPL.

While the Buy Now Pay Later payment method may still be the new kid on the block, it looks to be the changing landscape of eCommerce and the consumer’s preference that aims to shape the future of payback methods across Australia.