By John Reynolds on Thursday 25 November 2021
The fintech says it has stolen a march on the market, as its Tap and Pay is a speedier process than rival BNPL providers which its says require customers to generate a new code for each store transaction.
Australian fintech Zip has launched an in-store Tap and Pay function to its buy now, pay later offering in the UK, claiming to steal a march on rivals.
The move comes amid buy now, pay later becoming increasingly popular among young people buying online, and now at some high street outlets too.
But some consumer groups have warned many users are getting into debt by using the services and are struggling to pay bills.
The introduction of Tap and Pay means that shoppers will be able to buy now pay later in-store using their mobiles and a virtual Zip card, simply paying contactless at the till.
Zip’s Tap and Pay function is being rolled out nationwide, firstly in select stores including Homebase, The Fragrance Shop and Jollyes, the pet food store.
Zip has already launched Tap and Pay in the US, its native Australia, and New Zealand.
The fintech says it has stolen a march on the market, as its Tap and Pay is a speedier process than some rival pay later providers. It says, for example, it doesn't require customers to generate a new code for each store transaction. Clearpay, another BNPL provider for example, does not require the generation of a new code for its in-store offering.
Its own research, it says, shows that 12 per cent of adults under 35 would be more likely to shop in a store if a pay later service was on offer.
“Buy Now, Pay Later has become a central part of how we shop for goods and services.”
In September, Zip, which is listed on the ASX, agreed agreed a $50m strategic investment in Indian buy now, pay later firm ZestMoney, in a move designed to expose it to the Indian market.
Zip, which is headed up by CEO and co-founder Larry Diamond, said its investment was part of its plan to build a global pay later business, with India as a key market where ZestMoney already has over 11m registered users and over 10,000 online merchants.
In May, it made a major push for expansion into Europe and the Middle East with the acquisitions of European buy now, pay later provider Twisto and UAE-based Spotii, according to an update to the ASX.
This article was updated on 29.11.21 to include more detail on Clearpay's BNPL offering.