With changing consumer habits for digital purchasing and a significant increase in customer demand for Buy Now Pay Later (BNPL) payment services in the Australian market, Fintech firm Zip has decided to join forces with Microsoft (NASDAQ: MSFT). Zip says the new partnership is designed “to give customers greater access to Microsoft products, particularly the student market.”
As noted in a release, Australia currently represents one of the world’s largest markets for BNPL services, with more than 35% of consumers utilizing interest-free instalment payment plans.
Customers may sign up via the Zip App for single use digital credit cards “to use on Microsoft products.” Via the Microsoft Store, clients are able to easily buy Office products along with Surface laptops and tablets, and Xbox consoles and games.
As mentioned in the release, the unique single use digital credit cards will “offer customers a 12-month interest free payment solution, with customers able to choose between flexible weekly, fortnightly or monthly repayment options.”
According to Zip, the new partnership “empowers Australians to do more with their money, allowing them to shop with confidence without compromising innovation and performance.” The announcement also noted that Microsoft has plans “to extend the BNPL offering from customers to retailers and small businesses later in the year, as well as launching BNPL in other markets.”
As stated in the announcement:
“The deal with Microsoft follows the announcement of another deal Zip has made in recent months. Zip has joined Adobe’s Exchange Partner Program, which means their BNPL services will be available to thousands of eCommerce merchants using the Magento platform. Essentially, this will allow Magento merchants to implement buy now pay later BNPL capabilities seamlessly at checkout, helping to improve cash flow, increasing order value and promoting customer loyalty.”
Globally, Zip claims around 6.4 million customers and over 45,000 merchants. As one of the leading BNPL providers in Australia, Zip says there is “great potential to grow their service offering in the Australian technology sector.”
In addition to offering flexible BNPL payment options for customers, Zip has a business extension with solutions “to help businesses grow.” Offering business loans and simple lines of credit, the sign-up process for businesses “is quick and simple,” the announcement noted.
