Zip adds Chemist Warehouse to buy now pay later service
Chemist chain becomes latest retailer to join Zip's payment platform.
Buy now pay later provider Zip has announced that customers will soon be able to pay in-store and online at Australia's largest retail pharmacy chain, Chemist Warehouse, under a new partnership with parent company CW Retail Services.
The partnership will launch in the next few months and means Zip customers can also use their account to pay at My Chemist, My Beauty Spot and ePharmacy.
Chemist Warehouse joins an ever-growing list of retail giants on the Zip platform, including Bunnings, Target and Officeworks as well as airlines Virgin Australia and Tigerair. The discount chemist chain has over 400 stores nationally and yearly revenue over $5 billion, making it a notable acquisition for the payment provider.
Zip offer two buy now pay later products: Zip Pay and Zip Money. Zip Pay gives customers access to an interest-free line of credit up to $1,000, and they then have up to 60 days to pay it off without fees, provided they meet the $40 minimum monthly payment. Zip Money offers a larger credit limit, up to $30,000, with minimum repayment requirements and fees changing based on the individual credit limit.
Larry Diamond, co-founder and CEO of Zip, believes the partnership will make it easier for customers to manage their purchases. "We are excited to partner with one of Australia's top 10 retailers in Chemist Warehouse and expand their digital payment offerings. Zip customers now have the opportunity to pay for every day spend with their interest free digital wallet, enjoying better terms and a better payments experience," he said.
While the buy now pay later sector has come under media and regulator scrutiny, and is currently subject to a Senate inquiry, Zip believe the industry represents a legitimate alternative to credit cards, and that their platform is built around responsible consumer practices.
Peter Gray, Zip co-founder and COO, previously told Finder, "I think one of our bug bears is [the idea] that we're cutting corners on the underwriting side. It actually couldn't be further from the truth. The amount of data we're consuming at that point of application is far superior to any other credit provider in Australia. And that enables us to deliver real-time decisions with confidence, off the back of that huge amount of data that we consume."