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Partner now, pay later: BNPL heavyweights enter new agreements
Two of Australia’s largest buy now, pay later businesses have announced they are entering a new partnership.
Partner now, pay later: BNPL heavyweights enter new agreements
Two of Australia’s largest buy now, pay later businesses have announced they are entering a new partnership.
Both Afterpay and Zip told the market they are entering new partnerships and launching new products to grow their respective brands.
Afterpay has told investors it is now in a partnership with Westpac, with the buy now, pay later (BNPL) provider creating a new savings account.
In its statement to the Australian Stock Exchange (ASX) on Tuesday, 20 October, the fintech announced it had entered into an agreement with Westpac to use the major bank’s new “digital bank-as-a-service platform” to create convenient and innovative banking technologies.
Afterpay CEO Anthony Eisen told the market he believes his company can help deliver greater support and insight to help consumers manage their money.
“Together with the power of our retail platform, the latest banking technology from 10x, and the support of Westpac, we will begin by offering cash flow management in a simple way,” Mr Eisen said.
“Afterpay is in a unique position to extend and deepen the relationship with our customers and help them to manage their money more seamlessly through savings and budgeting tools. For Afterpay, this is clearly just the beginning as we explore this opportunity globally.”
Afterpay said the new product, which will be facilitated by the big four bank, would allow its customer base to have greater control over their finances as well as be able to manage their funds through one service, which is expected to be available from July 2021.
Not to be outdone by big brother, Zip also announced it has entered a partnership with Visa in creating what it has called Tap & Zip.
Under the arrangement, Zip customers can now purchase products anywhere Visa is accepted.
The new feature for Zip’s BNPL offerings can be used either online or in-store, competing with credit cards.
Zip Co has been granted a Principal 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.
“We continuously hear from Zip customers that they want to use their digital wallet to pay or everyday purchases like groceries and petrol, or to buy products and services from merchants that don’t accept BNPL,” Mr Diamond said.
“As a customer-obsessed organisation, we are excited to announce Tap & Zip which completely changes the game, enabling Zip to compete with the credit card at every checkout in Australia.
“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 in store transactions and conversion rates for thousands of retailers and merchants around the country, many of whom have been significantly impacted over the past year.”
On the closing bell, Afterpay grew by 4.51 per cent to $101.94 per share while Zip Pay was down by 1.12 per cent to $7.09 per share.
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