Digital payment processing giant Stripe has partnered with Zip, an Australian-based buy now, pay later (BNPL) provider. This collaboration promises to offer online retailers flexible payment options using Stripe's platform, allowing purchases to be split into four installments over six weeks.
Expanding Reach Through Partnerships
The partnership followed Zip's recent high-profile collaborations, including integrations with Mastercard and Google Pay. Zip's Chief Commercial Officer, George Eliopoulos, highlighted the significance of the Stripe partnership, noting that it mirrors similar efforts the company has already implemented in Australia.
As the two entities undergo a “testing and integration” phase, the company mentioned that the goal is to ensure seamless functionality between Zip's BNPL services and Stripe's payment platform. According to Eliopoulos, the integration is on track, with a full launch expected by the end of the year.
This partnership will initially focus on online merchants, providing them with an additional payment method to offer their customers. Zip's recent collaboration spree illustrates its strategic focus on expanding its footprint in the highly competitive BNPL market.
More Partnerships on the Horizon?
Eliopoulos hinted that Zip is not done yet and may soon announce additional partnerships with other major payment companies, though he refrained from naming specifics. The ongoing trend of partnerships within the payments industry aims to broaden the distribution and adoption of BNPL products; a strategy Zip intends to continue following.
Last month, Stripe partnered with Sage, a UK-based software company, to facilitate cash flow management and payment processing among small and medium businesses. Stripe also debuted payment tools and financing options for small businesses in the UK, promising faster and cheaper payments. Dubbed Stripe Capital, the new offering enables businesses to access financing to expand their operations.
On the new platform, Stripe utilizes business transaction history to assess eligibility. For companies that qualify for the service, funds reportedly arrive the next business day, and repayment occurs as the enterprise earns.
Elsewhere, Stripe announced plans to relaunch crypto asset payments after ending Bitcoin transactions six years ago. The fintech firm will allow merchants to accept payments using stablecoins, which reportedly enables them to benefit from faster transactions and low fees when using digital assets.
