Australia-based BNPL provider Zip has teamed up with payments infrastructure company Primer to expand and optimise its payment stack amid its expansion in the US. Primer unifies payment and commerce services while delivering a powerful set of payment recovery, success, and insights tools to provide businesses with unrivalled flexibility and visibility across their payments lifecycle.

They will support Zip to access and connect new card acquirers and processors, fraud, and communication tools to boost top line, while leveraging features such as fallbacks to reduce operational costs and build for contingencies. The announcement follows Zip’s recent year-end results, which revealed record transaction volumes (TTV) of USD 8.9 billion (up 7.0% YoY) and record group revenue of USD 693.2 million (up 16.1% YoY). In the US, Zip exited FY23 with positive cash EBTDA on a sustainable basis.

Expanding the reach of Zip’s BNPL offering The partnership with Primer will further drive distribution of Zip’s BNPL offering, lender WebBank, with plans for Primer to also add Zip as a payment option, enabling merchants across retail, fashion, travel, and mobility industries to add Zip to their payments stack with just a few clicks. Officials from Primer said they're happy to be the infrastructure of choice for Zip. While delivering localised payments expertise, optimisation features, and insights, they’re supporting companies like Zip to optimise payment costs and capture untapped revenue opportunities.

Similarly to Zip, the US is a strategic market for Primer, where they have experienced substantial growth and they anticipate a remarkable 30-fold surge in payment volume in 2023. Also commenting on this partnership, Zip’s representatives said that with an USD 11 trillion total addressable market in the US, BNPL services account for a mere 2% of all payments. Their partnership with Primer not only accelerates Zip’s growth trajectory but also positions us to seize this market opportunity in a scalable and sustainable manner.

More news from Zip In October 2022, Zip has announced the availability of Zip Card, which extends the ‘Pay-in-4’ functionality offline in a physical card format. In the Zip card pilot programme, 90% of participants said the card facilitates shopping. With a quarter million waitlisted customers, the card is available in the US, enabling consumers to ‘Pay in 4’ nearly everywhere Visa is accepted.

The Zip app allows customers to use the pay later service widely, including on shopping sites where Zip isn't a checkout option. The Zip Card offers a transparent payment method for in-store purchases, particularly at stores without contactless or mobile phone payment options. Despite mobile phone payments being available since 2014, only 6% of US consumers use them in physical stores, preferring traditional plastic cards.

Zip provides a versatile platform for various purchases and helps consumers increase their spending capacity. .