A full-scale rollout is anticipated by the year’s end, following the current testing and integration phase. Zip has been broadening its strategic alliances, including recent partnerships with Mastercard and Google Pay.
Global digital payment leader Stripe has entered into a partnership with Zip, an Australian buy now, pay later (BNPL) provider. This collaboration aims to offer online retailers more flexible payment solutions, enabling customers to split purchases into four payments over six weeks using Stripe’s platform.
Strengthening Presence Through Strategic Alliances
This new partnership builds on Zip’s recent series of high-profile collaborations, including those with Mastercard and Google Pay. George Eliopoulos, Chief Commercial Officer of Zip, emphasized the importance of this partnership with Stripe, noting that it aligns with similar initiatives already in place in Australia.
As both companies navigate the testing and integration phase, their focus is on ensuring a seamless user experience between Zip’s BNPL services and Stripe’s payment platform. Eliopoulos confirmed that the integration is progressing well, with a full launch expected later this year.
Initially, the collaboration will target online retailers, providing them with an additional payment option to offer their customers. Zip’s active pursuit of partnerships reflects its strategic objective to strengthen its position in the competitive BNPL market.
Future Collaborations on the Horizon?
Eliopoulos hinted at the possibility of more partnerships with major payment companies in the near future, though specifics were not disclosed. The growing trend of partnerships in the payments sector aims to expand the reach and adoption of BNPL solutions, a strategy that Zip intends to continue.
Last month, Stripe also partnered with Sage, a UK-based software firm, to support cash flow management and payment processing for small and medium-sized businesses. Additionally, Stripe launched new payment tools and financing options for small businesses in the UK, offering faster and more cost-effective payments. Known as Stripe Capital, this service allows businesses to access financing based on their transaction history, with funds typically arriving the next business day, and repayments made as revenue is generated.
In other developments, Stripe has announced plans to reintroduce cryptocurrency payments after suspending Bitcoin transactions six years ago. The fintech company will now enable merchants to accept payments in stablecoins, offering the benefits of faster transactions and lower fees associated with digital assets.
