Zip unlocks everyday payments with Tap & Zip
Zip Co today announces the official launch of Tap & Zip, a new product feature that reimagines buy now, pay later (BNPL) instore by enabling Zip Pay users to shop effortlessly anywhere that accepts Visa1.
Tap & Zip builds on Zip’s mission to be the first payment choice everywhere and every day. It will see Zip expand into more everyday spend categories and capitalise on the significant instore payments opportunity. Currently, just 13%2 of stores in Australia are able to accept buy now, pay later options. Tap & Zip addresses this significant and untapped customer need.
Today’s announcement underscores Zip’s obsession with providing merchants and customers the best possible payment experiences. For merchants, this initiative greatly increases access to new customers, bigger basket values and increased sales volumes. For customers, it means they can use Zip Pay to shop everywhere and pay later, always interest-free. Customers can also continue to check-out using Zip’s existing instore solutions, if that is what they prefer.
Tap & Zip follows a strategic product review of Zip’s instore payments experience, which to date has been based on barcode and QR technology, which requires complex point-of-sale integrations. Ever since contactless payments were introduced in Australia in 20063 Australians have universally accepted tapping as the preferred experience. With 24% of Zip transactions occurring in physical stores compared with the broader Australian retail data, which sees approximately 87% of payments instore – the opportunity to grow the BNPL share is significant.
Larry Diamond, Co-Founder and CEO, said, “BNPL has seen phenomenal growth over the last few years, as customers switched traditional forms of credit for flexible, digital alternatives. However, until now that growth has been restricted by a clunky instore checkout experience and limited acceptance.
“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. 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.
“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.
“Tap & Zip marks the future of BNPL: flexible and transparent payment options that are accepted everywhere.”
Zip has been granted a Principal Issuer license with Visa, the world’s leading payments technology company, and will leverage Marqeta’s leading open-API card-issuing platform, which together enables users to create Zip-branded virtual cards in real-time. This virtual card allows users to shop at any instore or online retailer where Visa is accepted4, and can be added to selected digital wallets. As a principal member and partner of Visa, Zip will earn interchange revenue on transaction volume processed on its cards.
Julian Potter, Visa’s Group Country Manager for Australia, New Zealand and South Pacific said, “Tap & Zip customers can enjoy the choice and flexibility that Zip provides, and know their transactions are backed by Visa’s global acceptance and multiple layers of security. Visa is proud to bring its scale and capabilities to enable fintechs like Zip to develop new payment solutions and to reach their global potential.”
1 Anywhere that accepts Visa payments online and Visa contactless payments in-store.
2 Insight from Australian Merchant Acquiring Program research, conducted by RFI Research and commissioned by Zip Co.
3 “Credit card purchases will give way to tap and go”, The Australian newspaper, October 21, 2013.