Zip’s new services offers SMEs access to BNPL benefits

By Leandra Monteiro

Buy now pay later (BNPL) provider Zip has added to its initial trade solution, introducing a new service that allows SMEs to pay off all kinds of expenses in instalments. The service enables business owners to use BNPL for checkout payments of up to $3,000, so they can pay off all kinds of expenses in instalments.

For Zip a shift into the B2B space is the natural next step. As a result, this new product has been designed to allow small businesses quicker and easier access to credit without going through traditional banking channels. This credit can use anywhere Zip is accepted, including online, in stores, or even to pay household bills.

A Zip Business Trade account has a monthly account keeping fee of $12. However, this fee is only charged when there is an outstanding balance at the end of the month. Users can add as many purchases as needed to their account within the account limit. After that they can choose how much to pay back in each instalment. To use it at the checkout, all you need to do is select buy now, pay later as the payment method.

Zip says the product is not designed to get struggling small businesses out of trouble. Instead, it is intended to help them pay for something that will boost their revenue in the longer term. According to market research, Zip claims small business owners are more likely to look for cash to pay a bill, purchase a new tool or even buy some Facebook ads because it will help them grow.

Ultimately, the BNPL sector is evolving, and numerous FinTech founders believe there is plenty of growth still to come in the business-to-business space. For BNPL players both here in Australia and abroad, innovation is crucial.