- Buy now, pay later service provider Zip Co, is now live on Amazon Australia
- This is a significant move for the Afterpay rival as it’s set to expand its current network of 1.5 million customers
- Amazon Australia has on-boarded with over 16,000 retailers offering Zip Co
- While buy now pay later increases retail sales, it allows shoppers to spend money they don’t have
- UBS analysts claim Australian’s will spend $7 billion on buy now, pay later methods and this will potentially increase to $12 billion by 2021
- Zip Co’s shares have soared 16.9 per cent today, trading for $4.02 cents each
Zip Co has entered a strategic agreement with Amazon Australia for its “buy now, pay later” service platform to be offered for customers shopping on Amazon.
This offering is a milestone achievement for Amazon Australia, as up until today, Amazon Australia did not offer any buy now, pay later (BNPL) options.
Amazon Australia has now joined approximately 16,200 retailers who offer the BNPL service.
“We are thrilled to have secured this strategic agreement with Amazon Australia,
providing customers with a more flexible way to pay,” Zip CEO and Managing Director Larry Diamond said.
This agreement aligns with Zip’s vision of providing customers with convenience and choice in how they choose to pay for everyday products.
“The agreement delivers a fantastic experience for customers who are looking to own the way they pay,” Larry added.
This is also a significant move for the Afterpay rival as it is likely to expand its current network of 1.5 million customers.
“This agreement puts Zip firmly on the main stage by allowing customers shopping on Amazon.com.au to use Zip to pay at their pace,” Larry stated.
UBS analysts estimate that Australians will spend approximately $7 billion via BNPL payments. By 2021, these analysts estimate the figure will reach $12 billion, accounting for nearly 4 per cent of total retail sales.
In connection with the strategic agreement, Zip will issue to an affiliate of Amazon warrants to buy up to 14,615,000 ordinary shares (warrants) at an exercise price of $4.70.
Zip Co’s shares have soared 16.9 per cent today, trading for $4.02 cents each at 2:10 pm AEDT.