FlexiGroup has a similar product in market, called bundll, which launched in February. Partnering with Mastercard, it was the first BNPL provider to offer buy now, pay anywhere, up to $1000.
Klarna’s app also lets online users shop anywhere through its app. Klarna is part-owned by Commonwealth Bank.
The process works by putting a virtual Visa card linked to customers’ Zip Pay accounts into the Wallet app on the iPhone or Apple Watch, or on Android phones via Google Pay. Zip will receive a lower fee from the merchant than it does from a direct integration.
Zip said 13.2 per cent of the stores in Australia were able to accept buy now, pay later options but the deal would increase this and lead to the instalment product being used more often for everyday items such as petrol and at supermarkets. Shaw & Partners said Zip’s addressable market would increase “by at least six to seven times” as a result of the Apple and Google integrations.
Zip shares were trading 0.5 per cent higher at $7.21 in late trade. Afterpay shares surged past $100 after it said it would offer transaction and savings accounts through Westpac.
Zip CEO Larry Diamond said in a statement the move would “dramatically increase instore transactions and conversion rates for thousands of retailers and merchants around the country”.
Visa group country manager for Australia Julian Potter said its scale and capability would “enable fintechs like Zip to develop new payment solutions and to reach their global potential”.