Zip Co, one of Australia’s original buy now, pay later (BNPL) players, is fast moving into the business-to-business payments market with the release of Zip Business ‘tap to pay’.
Launched Wednesday, the new offering will give businesses the option to BNPL anywhere that accepts Visa using a one-tap payment available through digital wallet technology. It expands the existing Zip Business Trade Plus, which gives SMEs up to $150,000 in credit across 35,000 approved merchants such as Bunnings and Officeworks.
Geof Alexander, general manager of Zip Business, says the use of digital wallets has skyrocketed 90% throughout the pandemic, as consumers increasingly prefer contactless payment options.
“We want to be the first payment choice for businesses in Australia and this is a really important step,” Alexander tells SmartCompany.
Zip Business plans to roll out a range of additional features for its SME customers in a bid to grow its market share of B2B payments to rival that of its consumer market.
“But at this point, we’ve only been in the B2B space for the last couple of months, so we’re about seven years behind,” Alexander says.
Zip Co launched Zip Business Trade Plus in April, offering a new line of credit between $3,000 and $15,000 which is interest free for 60 days.
The credit can be used where Zip is accepted, which currently includes 35,000 merchants.
The latest ‘tap to pay’ offering is available to businesses with a Zip Business Trade Plus account. They must also have been in business for six months and generate at least $5,000 in sales per month.
Alexander says small businesses “are the lifeblood of the Australian economy” with entrepreneurs taking incredible risks to create a business around what they are passionate about.
“We know what it’s like to grow from being the little guy and we want to give our customers the tools to fulfil their business dreams,” he says.
Founded in 2013 by Larry Diamond, Zip Co has gone on to become one of the fastest growing BNPL companies in the world.
Zip has more than 7.3 million active customers, with its core markets including Australia, New Zealand, the United Kingdom, and the US.