With changing consumer habits for digital purchases and a significant increase in customer demand for Buy Now Pay Later (BNPL) payment services in the Australian market, the Fintech company Zipper decided to partner with Microsoft (NASDAQ: MSFT). Zip says the new partnership is designed “to give customers better access to Microsoft products, especially the student market.”
As noted in a statement, Australia is currently one of the largest markets in the world for BNPL services, with more than 35% of consumers using interest-free installment payment plans.
Customers can sign up through the Zip app for digital one-use “for use on Microsoft products” credit cards. Through the Microsoft Store, customers can easily purchase Office products as well as Surface laptops and tablets, as well as Xbox consoles and games.
As mentioned in the release, digital single-use credit cards “will provide customers with a 12-month interest-free payment solution, with customers able to choose from flexible weekly, bi-monthly or monthly repayment options.”
According to Zip, the new partnership “enables Australians to do more with their money, allowing them to shop with confidence without compromising innovation and performance.” The announcement also noted that Microsoft plans to “expand BNPL’s offering from customers to retailers and small businesses later in the year, as well as launch BNPL into other markets.”
As stated in the announcement:
“The deal with Microsoft follows the announcement of another deal Zip has reached in recent months. Zip joined Adobe Exchange Partner Program, which means their BNPL services will be available to thousands of online merchants using the Magento platform. Essentially, this will allow Magento merchants to implement the BNPL Buy Now Pay Later features seamlessly at checkout, which will help improve cash flow, increase order value, and build customer loyalty.
Globally, Zip claims approximately 6.4 million customers and over 45,000 merchants. As one of the main suppliers of BNPL in Australia, Zip says that there is “great potential to expand their service offering in the Australian technology sector”.
In addition to offering flexible BNPL payment options to customers, Zip has a business extension with solutions “to help businesses grow”. Offering simple business loans and lines of credit, the business registration process “is quick and easy,” the ad notes.