It seems Australian shoppers can’t get enough of splitting up purchases, with recent research revealing that 5.8 million Australians currently have at least one buy now pay later account.
Industry giant, Zip, has more than 2 million customers across Australia and New Zealand on its platform.
Earlier in April, more retailers piled into the Zip platform, responding to the growing consumer awareness of and demand for buy now pay later payment options.
The latest retailers to join are JB Fi-Fi, The Good Guys and L’Occitane. They join more than 24,000 retail partners across Australia who are already accepting seamless Zip payments.
When used wisely, BNPL is a hugely valuable tool for consumers, helping to spread the cost of lumpy purchases without resorting to high-cost credit options.
Young shoppers, in particular, are turning their backs on credit cards in favour of buy now, pay later services, which offer incur no interest on purchases. In the month of May, Australians dumped more than 100,000 credit cards, taking the number of cards currently in operation back to levels unseen since 2009.
Shoppers can sign-up for Zip Pay or Zip Money and be ready to use the service in just a matter of minutes. If approved, you’ll see your available spend and be ready to shop at thousands of store immediately. On the retailer’s side of the transaction, businesses are paid in full upfront by Zip, which takes on the consumer credit and risk. Zip says it delivers not only an increase in the average order value but also fewer returns.
According to Zip Managing Director and CEO Larry Diamond, the company believe that the opportunity for Zip significantly grows each and every day.
“We continue to execute, build momentum, and accelerate the global shift away from the broken and unfriendly credit card, towards a better, fairer digital alternative,” said Diamond.
Despite Zip being seven years into their company history, global BNPL adoption remains in its infancy, which means shoppers and retailers alike can expect new products, innovation and technology in the space within the next few years.
