Zip Expands Pay-in-4 Platform with Launch of Zip Card Zip Expands Pay-in-4 Platform with Launch of Zip Card
Using a Zip card to pay

Zip Expands Pay-in-4 Platform with Launch of Zip Card

With demand for “buy now, pay later” services still proving strong, the BNPL platform Zip has revealed its latest offering. Previously known as Quadpay, the Australian FinTech has announced the launch of Zip Card in the United States. Using the card, customers will be able to utilize the company’s “Pay-in-4” service nearly anywhere Visa is accepted. The Zip Card is issued by WebBank.

According to Zip, following a pilot program for the card, 90% of customers stated that the product made in-store shopping easier. Prior to this physical card’s launch, users would need to use a digital card, meaning that retailers would need to accept mobile payments in order for consumers to use Zip for their purchases.

Looking more closely at the offering, there is a $35 minimum purchase for the card. Additionally, a $4 installment fee will be charged at the commencement of purchases. This fee will be applied across each payment, so a $200 purchase would be financed over the course of four $51 payments (for a total of $204). Payments are due every two weeks starting on the day of the purchase.

In a statement about the card’s launch, Zip’s U.S. Chief Marketing Officer Jinal Shah said, “The Zip app lets customers use the pay later service pretty much everywhere… even on shopping sites where Zip is not at the checkout option. With the Zip Card, we are offering customers access to another fair, transparent payment method in a familiar format to use in-store, specifically at stores that do not accept contactless or mobile phone payments.”

Zip isn’t the first BNPL to explore expansion into physical card options. This summer, the Swedish company Klarna launched its Klarna Card in the U.S. Similar to the Zip Card, Klarna’s offering also gives customers the ability to split purchases into four payments — and Klarna Card customers can delay the down payment the platform typically requires. Also notable is that the Klarna Card does have a monthly fee of $3.99, but this is currently waived for new customers during their first 12 months.

While mobile payment acceptance is growing — meaning that the base Zip product could be utilized at a number of retailers — it does make sense that some customers would require or prefer a physical card. That said, the $4 installment fee is an obvious downside that users might not anticipate. Because of this, it will be interesting to see if the Zip Card catches on among BNPL fans.

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

FedEx Announces Winners of 11th Annual 2023 Small Business Grant Contest

Nearly three months after the entry period ended, FedEx has announced the winners of its 11th annual Small Business Grant Content. This year's event saw more than $300,000 in funds going to a variety of small businesses across the nation. Last month, the company revealed 100 finalists, with that list now being narrowed down to just 10 winners. This year's grand prize winners included KindVR, The Cupcake Collection, Up In...
Summer app

Student Loan Benefit FinTech Summer Raises $6 Million

For years, student debt has been one of the most talked about financial topics. What's more, while the debt itself has become a major part of many Americans' lives, discussion of student loans has become political due to efforts to forgive certain loan repayments. However, while we wait for resolution on that front, a FinTech that brings student debt benefit solutions to employers and consumers has raised a new round...
H-E-B and Central Market  credit cards

Imprint Launches Credit Cards from H-E-B and Central Market 

The FinTech Imprint is partnering with the popular Texas-based grocery chain H-E-B for a pair of new rewards credit cards. This week saw the launch of the H-E-B Visa Signature Credit Card as well as the Central Market Visa Signature Credit Card. With these two (nearly identical) options, customers will be able to earn rewards on groceries and beyond. First, both versions of the card earn up to 5% back on select...
Melissa Urban holding a Ness card

Health and Wellness Rewards Card Ness Partners with Whole30

In recent years, several unique rewards cards have come to market. These include offerings from FinTech startups as well as brands looking to do something special for their loyal fans. On that note, a recently-announced rewards credit card offering is now working with a popular brand to introduce new benefits for customers. This week, the Ness Card (which is issued by The Bank of Missouri) unveiled a new partnership with...
Choice Privileges Select Card

Choice Hotels, Wells Fargo Debut Choice Privileges Select Card

With spring well underway and the summer travel season now just around the corner, Choice Hotels and Wells Fargo have unveiled their latest co-branded credit card offering. Today, the two companies announced the Choice Privileges Select Mastercard. Carrying an annual fee of $95, this card will serve as the premium option in the hotel brand's new lineup. Looking at the Choice Privileges Select, it offers a mix of rewards categories....