- Digital retail finance and payments company Zip Co (Z1P) has launched Tap & Zip, a feature which allows Zip Pay to be used anywhere which accepts visa
- The new feature for Zip's buy now, pay later (BNPL) offerings can be used either online or in-store, competing with credit cards
- Zip Co has been granted a principle issuer licence by Visa and will use Marqueta's tech to generate a virtual card in real-time for users
- The virtual card can also be added to certain digital wallets and is compatible with Apple Pay and Google Pay
- Co-founder and CEO Larry Diamond expects Tap & Zip will streamline in-store payments and bolster transactions
- Zip Co shares are up 4.46 per cent at market open, worth $7.49
Digital retail finance and payments company Zip Co (Z1P) has launched Tap & Zip, a feature which allows Zip Pay to be used anywhere which accepts Visa.
The new feature for Zip's buy now, pay later (BNPL) offerings can be used either online or in-store, competing with credit cards.
Zip Co has been granted a Principle Issuer Licence by Visa and will use Marqueta's open-API card-issuing platform to allow Zip Pay users to generate a virtual card in real-time.
This virtual card can be added to certain digital wallets and is compatible with both Apple Pay and Google Pay.
Co-founder and CEO Larry Diamond expects Tap & Zip will streamline in-store payments and bolster transactions.
"This is a huge day for Zip and the Australian retail sector. Tap & Zip is a new way for customers to pay that will dramatically increase instore transactions and conversion rates for thousands of retailers and merchants around the country, many of whom have been significantly impacted over the past year," he said.
At present, only 24 per cent of Zip Pay transactions occur in-store compared to around 87 per cent of transactions more broadly in the retail sector.
"BNPL has seen phenomenal growth over the last few years, as customers switched traditional forms of credit for flexible, digital alternatives. However, until now that growth has been restricted by a clunky instore checkout experience and limited acceptance," continued the CEO.
"We continuously hear from Zip customers that they want to use their digital wallet to pay for everyday purchases like groceries and petrol, or to buy products and services from merchants that don’t accept BNPL. Everywhere Australians can pay with a Visa contactless card, they’ll now also be able to Tap & Zip, interest-free," he added.
Additionally, Zip will earn interchange revenue from transactions on its virtual cards as a principal member and partner of Visa.
Visa Group Country Manager for Australia, New Zealand and South Pacific Julian Potter said Visa is proud to support the growth of Zip and other fintechs.
"Tap & Zip customers can enjoy the choice and flexibility that Zip provides, and know their transactions are backed by Visa’s global acceptance and multiple layers of security. Visa is proud to bring its scale and capabilities to enable fintechs like Zip to develop new payment solutions and to reach their global potential," Julian added.
Zip Co shares are up 4.46 per cent at market open, worth $7.49 at 10:32 am AEDT.