With Buy Now Pay Later (BNPL) companies popping up all over the place, shoppers have been allowed to opt-out of traditional credit programs and substitute for an interest-free option. This has left many credit card companies floundering while the BNPL industry has taken off.
Now, we’re seeing BNPL providers take on the contactless payment market, allowing customers to spend in-store wherever pay pass is accepted. BNPL giant, Zip, showcases this program with its Tap & Zip offering.
BNPL services such as Zip have turned traditional credit models on their heads. This is because they offer the same general service – later payback periods for immediate purchases – while also offering interest-free repayment schedules.
This partnership has been created in order to approach 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 also allowing customers to use their Tap & Zip plan at places beyond the world of retail. For instance, you can now Tap & Zip at the petrol station, your car mechanic or even your dentist if they’ve chosen to accept BNPL.
This also shows foresight on the part of Zip, which has secured a place in the future of finance with this step toward offering the pinnacle of shopper convenience. If we continue to see other providers do the same, it could be the end of traditional payback methods as we know them.
While some think that Buy now pay later still the new kid on the block, it will be the changing landscape of eCommerce and the consumer’s preference that, in the end, will shape the future of payback methods across Australia.