86 400 customers can now see Zip transactions in their banking app
This is "just the start" for the neobank.
Australian neobank 86 400 will allow its customers to see buy now pay later (BNPL) purchases within their own bank accounts thanks to a new partnership with Zip. The neobank just launched its innovative combined transaction and savings account in September 2019, with the account allowing you to connect your other bank accounts and see your transactions from those other accounts in a feed. Now, customers will be able to see their Zip transactions in this feed as well.
86 400 CEO Robert Bell told Finder the partnership with Zip came about because both companies wanted to help customers feel more in control of their money.
"More than two-thirds of Australians are multi-banked and looking for new ways to spend and budget," Bell said. "Bringing 86 400 and Zip together helps our customers see their whole financial world and make more informed spending and saving decisions on a daily basis."
Of the partnership, Bell said they had known the Zip team "for a while" and they had a "huge amount of respect for them and what they had built".
"Both 86 400 and Zip are customer-focused businesses doing things Australians wouldn't expect from a financial institution, so working together made complete sense."
Zip offers two BNPL products, Zip Pay and its larger Zip Money product, both of which will be able to be pulled into the 86 400 connected accounts feature.
This feature is currently being powered by Yodlee, a global data service which allows companies like 86 400 to securely connect to financial accounts. However, Bell said this may change with the start of open banking.
"As an early participant in Open Banking testing we are already preparing to migrate this service to APIs, however this is likely next year when Open Banking is live, operational and more broadly available in the financial services ecosystem," Bell said.
86 400 is not the first neobank to allow customers to see BNPL transactions in their app, though. In October 2018, Up Bank announced a partnership with Afterpay which would allow its customers to see their BNPL transactions in their banking app. The feature went live the following year in February.
But while similar features have been launched elsewhere, Bell says this is just the start for the 86 400.
"Zip and 86 400 are like-minded, purpose-driven businesses. We were both built to give Australians better experiences with their money, and so by working together, we can accelerate our shared mission and benefit many more people. This is just the start," he said.
"With two disruptors focused solely on delivering what customers want, we can move at a pace that incumbents can only dream of, backed by a mindset of building experiences that are better for the customer."