Microsoft Store announces Zip as first BNPL partner
Today, Microsoft Store has announced its partnership with Buy Now Pay Later (BNPL) giant Zip Co Ltd, to offer instalment payment plans for the first time. Launched in Australia as its pilot market of choice, the partnership is a response to advancing customer digital purchasing habits.
Designed to enhance the accessibility of Microsoft products and empower Australians to do more with their money, the deal will deliver the freedom to personalise the payment experience – offering interest-free payments over 12 months. BNPL will first be made available to customers, with plans to roll out the payment solution to retailers and small businesses later this year.
Customers will be able to sign up to a single-use digital credit card bespoke to Microsoft purchases through the Zip App; a complementary feature to help customers manage their finances when shopping with Microsoft, without going through their bank.
Michelle Casey, Digital Stores Lead at Microsoft ANZ, said, “Our latest collaboration with Zip is a vital extension of our commitment to provide even greater access to Australians, particularly the student market so that they can shop with confidence without compromising innovation and performance.”
“We are excited to venture into the BNPL ecosystem with an innovative fintech partner who shares the same vision of making technology a more available resource. This is a necessary step following a sharp increase in customer demand towards tailored payment options in the Australian market, more than any global counterpart.”
This move follows the growth of the Buy Now Pay Later Market in Australia, with over 35% of consumers now using payment plans. As part of its growth strategy, Microsoft plans to expand its BNPL offering into other markets, and invest in the capability for further technical integration to ensure the best customer experience.
Colin Baines, Zip’s Director, Enterprise Sales said, “Zip is extremely excited to be partnering with Microsoft, one of the world’s great brands. Every day we are seeing that people are changing the way they pay, especially online. Zip believes there is great potential to grow our services in the Australian technology sector, and we are proud to be doing this with Microsoft.”
Globally, Zip has 6.4 million customers, and more than 45,000 merchants.
For more information on Microsoft’s BNPL services, please visit: www.microsoft.com/en-au/store/b/zip-pay
