More buy now pay later options are coming to Kmart
Zip's interest-free plans will soon be available online with Kmart.
Buy now pay later provider Zip has announced a new partnership with Kmart, with Zip due to launch at the retailer in late May. This is the latest in a number of high-profile partnerships for the interest-free finance provider, which announced a deal with Bunnings in November and previously having locked in partnerships with Kogan, Target and Fantastic Furniture.
Zip CEO and managing director Larry Diamond said they were "delighted" to partner with another truly significant brand.
"We believe Zip will be a great fit for Kmart, providing their customers with a better way to pay for everyday products and purchases," he said.
Zip is part of the rising "credit card disrupting" buy now pay later space which allows consumers to shop interest-free at partner retailers. Zip's largest competitor in the Australian space, Afterpay, has also locked in a deal with Kmart. This is now common practice for retailers as they move to make shoppers' preferred buy now pay later platform available.
Zip offers two products for shoppers: Zip Pay and Zip Money. Zip Pay is a smaller line of credit up to $1,000 while Zip Money is larger and can be for as much as $30,000. Both products charge no interest but rather come with a monthly fee if you want more time to repay your balance after the interest-free period, which is about two months. This is different from Afterpay which requires the entire balance to be repaid over four equal instalments.
According to Zip, the new partnership with Kmart continues to deliver on its strategic vision of partnering with Australia's largest retailers and everyday products and spending.
Shoppers should expect to be able to use Zip online with Kmart from the end of May 2019.