Zip has teamed up with WebBank to introduce a buy now, pay later (BNPL) physical card offering called Zip Card in the US.
Under the tie-up, WebBank will serve as a lender to Zip Card clients.
The latest offering is said to complement the firm’s virtual card proposition that enables consumers to pay for their online and in-store purchases in four instalments.
Zip US Co-CEO Brad Lindenberg said: “Our partnership with WebBank further validates that flexible payment options are a win-win for both consumers and merchants and will continue to shape shopping habits well beyond the pandemic and this holiday shopping season.”
Zip, which previously operated in the US as Quadpay, said that its virtual BNPL offering is already used by some six million consumers in the US.
The firm is launching its physical card offering as majority of the consumers are expected to hit shops again after being fully vaccinated against Covid-19.
Consumers can request for Zip Card via its app and use the virtual card to start spending immediately on both in-store and online.
Payments can be automatically made from their linked debit card every two weeks.
Zip is expected to ship Zip Cards to qualified applicants throughout 2022.
Commenting on the development, WebBank president Jason Lloyd said: “We are excited to work with the leadership at Zip to further accelerate the growth of the buy now, pay later product with a physical card offering.
“Our partnership with Zip will serve to empower merchants and retailers to bring flexible, transparent payment options to shoppers returning to retail locations and malls as pandemic concerns continue to wane and vaccinations increase.”
In September this year, Zip set foot in the Indian BNPL space with a $50m investment in fintech ZestMoney. The firm picked a minority stake in the Indian firm as part of its investment.
The same month, the firm brokered a deal to buy South African BNPL firm Payflex.
Set up in Australia in 2013, Zip currently provides point-of-sale credit and digital payment services in 13 markets worldwide. It includes Canada, New Zealand, Czech Republic, Mexico, the Philippines, Poland, Saudi Arabia, UAE, the UK, and the US.
