Google Pay Enters BNPL Game with Zip

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By Published On: December 15, 20230 Comments

Google Pay has announced partnerships with Zip and Affirm to rollout BNPL services on in the US starting next year.

Google Pay will be rolling out Buy Now Pay Later services in the US as early as January next year with plans to expand globally. 

Partnered with Australia-born financial service company Zip and American company Affirm, Google Pay will soon be offering four week instalment payment options. Rolling out next month, the integration will enable Google Pay users to spread out their payments for purchases over $35 USD on select Android apps or merchant sites that offer Google Pay for checkout.

The Zip integration is being termed a pilot launch that will begin in January, while the Affirm offering will be made available during Q1 2024.

“People are shopping on Google more than a billion times per day, and consumers are increasingly looking for more choice and flexibility when it comes to payment options,” said Drew Olson, Senior Director at Google Pay. “By teaming up with pay-over-time providers like Affirm and Zip, we are able to give Google Pay users more payment options when checking out, while providing merchants with another tool to drive their growth.”

Zip co-founder and US CEO Larry Diamond says the partnership is a win-win scenario where convenience meets commerce. 

“Consumers are increasingly seeking flexibility at checkout, while merchants are looking for innovative ways to boost sales and enhance customer loyalty,” said Diamond. 

“With Zip available in the Google Pay checkout experience, we are bridging a gap and providing a flexible credit product for the many consumers overlooked by traditional credit products. We’re empowering consumers with more choices while providing merchants with a powerful tool to increase conversion rates and build lasting customer relationships.”

Competitor Apple launched its own native BNPL service called Apple Pay Later in March this year in the US. Accessible through the Wallet feature on IOS devices, users can apply for Apple Pay Later loans of $50 to $1,000, which can be used for online and in-app purchases with merchants that accept Apple Pay. Through the Wallet feature, users can track their loans and receive notifications via Wallet and email so they can plan accordingly.

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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