Zip – the global ‘buy now pay later’ group, has launched in the UK, with Homebase, Boohoo and The Fragrance Shop among the first retailers to join the UK platform.
Founded in Sydney in 2013, the company now has 5.7 million customers globally and is said to be worth £3 billion on the Australian Stock Exchange.
Zip’s BNPL (buy now pay later) concept enables shoppers to spread the cost of items up to £1,000 via four interest-free instalments, paid over six weeks. Meaning that they only pay 25 per cent at the point of purchase (online or instore).
Zip appears to be particularly popular for large and occasional purchases. According to findings from a survey of its users, nearly half (47 per cent) claimed they would use BNPL for furniture or large appliances and 29 per cent for home renovations and travel respectively.
Other brands included in the UK launch line-up are Alternative Airlines, Fashion Nova, The Game Collection, Hype, JTF Mega Discount Warehouse, Kiddie’s Kingdom, Marks Electrical, Never Fully Dressed, Oh Polly, Perkbox, ShopTo and Wave Direct.
Larry Diamond, Zip co-founder and CEO, said: “We’ve created a transparent, flexible and fairer digital alternative to credit cards and our ambitious UK expansion is a significant milestone in our journey.
“We process $7.5 billion in payments every year across Australia, New Zealand and the United States which only demonstrates the appetite for new, digital and flexible ways to pay. We’ve invested in the UK with a long-term strategy and are excited about our offer as domestic and global retail and eCommerce develops.”
Anthony Drury, managing director of Zip UK, said: “Zip will be one of the first to offer Buy Now, Pay Later both online and in-store in the UK, providing the choice and flexibility that we know our UK customers want.
“Our global footprint means we have a leading technology and infrastructure to bring more products – already used by merchants and consumers in the US and Australia – to the UK in 2021. Our network also offers real growth opportunities for UK retailers to reach new customer markets.
“We’ve built a brilliant team of fintech and eCommerce experts in the UK and are recruiting at pace. We’re well-positioned to drive our ambitious UK growth plans.”
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