Sydney fintech Zip Co Ltd (ASX: Z1P) will let customers use Apple Pay and Google Pay to purchase products as part of a new virtual tap and go buy-now-pay-later (BNPL) credit card in a partnership with Visa.
Called “Tap & Zip”, the fintech says the product reimagines instore BNPL, which is currently offered by just 13% of Australian retailers, expanding the company’s potential market to all categories.
CEO and co-founder Larry Diamond hailed it as “the future of BNPL” for everyday purchases such groceries and petrol, adding that “until now that growth has been restricted by a clunky instore checkout experience and limited acceptance”.
“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,” he said.
“Everywhere Australians can pay with a Visa contactless card, they’ll now also be able to Tap & Zip, interest-free. 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.”
Purchases will be treated like a normal Zip Pay transaction and offered interest-free. Zip’s existing instore solutions will continue.
Zip now has a Principal Issuer license with Visa, and will earn interchange revenue on transaction volume processed on its cards.
Using Google Pay or Apple Pay with Tap & Zip using the virtual card means everything from coffees to groceries and travel can now be paid for using the BNPL platform.
The option is available from today.
Zip’s share price has climbed more than 2% in morning trade on Tuesday to $7.32.
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