Zip

Zip Co is a BNPL platform. The company was founded in Sydney in 2013 and now operates in Australia, New Zealand, the United States, South Africa and parts of Europe.

As of the end of the 2022 financial year, 11.4 million Zip customers made 74.3 million purchases, with an annual transaction value of $8.7 billion.

How does Zip work?

Zip offers two products:

• Zip Pay allows people to buy products, receive them immediately and pay for them in instalments. It sounds like a modern version of traditional instalments, but it's actually another form of credit.
• Zip Money has higher limits and is a line of credit that works more like a credit card.

Both Zip Pay and Zip Money are accessed through the same Zip app, available for free through Google Play and the App Store, and you can switch between accounts once you're approved.

When you buy something with Zip, it's added to your account - you don't have to pay anything upfront. Each month you'll receive a detailed breakdown of:

• How much you've spent and paid back
• Fees (including a $7.95 monthly fee when you owe money at the end of the month, plus late or chargeback fees for missed payments)
• Interest charged (if you use Zip Money)
• How much you'll have to pay.

Zip allows you to pay your balance in full or in instalments. Repayments can be made weekly, fortnightly or monthly, as long as you repay at least $10 per week to pay off your balance in Zip Pay. For balances in Zip Money, the minimum repayment may be higher.

Where to use Zip

More and more stores are adding Zip Pay and Zip Money to their list of accepted payment methods, including major retailers such as Kmart, Target, Bunnings, Officeworks and Kogan. You can also buy gift cards for Coles and Woolworths through Zip stores. Zip currently has over 26,000 merchants in Australia and New Zealand, and you can use the service to buy everything from clothes to gift cards, medicines to travel.

Can I use Zip overseas?

Yes. Zip has a "tap and pay" feature in Zip Pay that allows customers to shop anywhere contactless payments are accepted by linking to Apple Wallet or Google Pay.

You can also generate a one-time virtual Visa card that can be used at merchants that haven't partnered with Zip.

Pay your bills with Zip

You can even use Zip to pay eligible utility bills that can be paid in instalments via BPay. This may seem like a good idea, especially if you get an unexpected or large bill.

But given the fees Zip charges, including a $2.50 processing fee per bill (depending on your account) (and possible interest if you use Zip Money), you'll be better off financially if you contact your utility provider directly and work out a payment plan or deferred payment with them. Before paying your bills through Zip, investigate all of your options.