Zip to Offer BNPL to US Merchants Using Stripe

Zip’s buy now, pay later (BNPL) offering will be generally available later this year as a payment method for U.S. merchants using Stripe. Its availability in the United States is currently limited to beta users.

These merchants will be able to enable Zip as a payment method with a single click in their Stripe dashboard, thereby offering BNPL to their customers at checkout, Zip said in a Thursday (Aug. 15) press release.

“Our goal at Zip is to provide customers transparent and flexible credit solutions that enhance their financial autonomy while providing merchants access to a new and motivated customer base,” George Eliopoulos, chief commercial officer at Zip, said in the release.

Zip’s algorithm enables more people to access credit, enabling merchants to reach a new segment of customers and increase both conversion rates and basket sizes, according to the release.

The company’s payment method is currently used by 6 million consumers and 79,000 merchants across the United States, Australia and New Zealand, according to the release.

The partnership of Zip and Stripe in the U.S. marks an extension of a collaboration that began last year in Australia, per the release.

“Our strategic partnership with Stripe continues to offer strong outcomes for merchants and customers in Australia, and we are excited to replicate the success in the United States,” Eliopoulos said in the release.

Zip teamed with another payments and commerce infrastructure provider, Primer, in September to expand its share of the U.S. BNPL market.

The BNPL provider said at the time that its partnership with Primer will let merchants in the retail, fashion, travel and mobility sectors make Zip part of their payments stack.

“With an $11 trillion total addressable market in the U.S., BNPL services account for a mere 2% of all payments,” Zip Co-founder and U.S. CEO Larry Diamond said in a September press release. “Our partnership with Primer not only accelerates Zip’s growth trajectory but also positions us to seize this colossal market opportunity in a scalable and sustainable manner.”

Zip currently leads the PYMNTS.com Buy Now Pay Later Provider Rankings, which assesses BNPL apps based on publicly available information and exclusive app usage data. As of the July update of the Provider Rankings, Zip leads the field with a score of 84, followed by two providers that have scores of 82: Klarna and PayPal.