Get a 0% interest line of credit with a flexible repayment schedule and without a credit card. But as with all buy now pay later services, watch your budget.
Zip Pay is an interest-free payment solution provided by Zip Co. It is accepted by over 26,000 of stores across Australia. With Zip Pay, you'll get a credit limit up to $1,000 and have the ability to pay later in regular interest-free instalments, no credit card required.
Zip's payment plans are flexible, allowing you to pay off your loan weekly, fortnightly or monthly, with a minimum monthly payment of $40.
Interest rate (p.a.)
Min. loan amount
Max. loan amount
How does Zip Pay work?
You can start using Zip Pay after going through the quick sign-up process. Once you’ve signed up and been approved, you can make purchases in two ways:
- Online. Using the app you can find the store you want, add items to your cart and then pay using Zip at the checkout via a single-use Visa card.
- In store. You can add a Zip card to Apple Pay or Google Pay to use Zip Pay at any contactless payment terminal. You can also sign in to your account and At any participating Zip Pay merchant, sign in to your account and select Zip Pay as the payment method during checkout.
- For bills. You can pay any BPAY biller using Zip Pay.
Once you’ve made a purchase, you choose how you'd like to repay. You can choose a weekly, fortnightly or monthly repayment schedule. A minimum monthly payment of $40 is required.
To avoid the $7.95 monthly fee, you need to pay off your purchase by the end of the month you receive your statement. You'll receive your statement on the first day of the month following your purchase (which is why you get "up to 60 days" fee free). After this date, a $7.95 monthly fee will be added to your outstanding balance.
All payments are 100% interest-free and you can sign up for direct debit so payments are made automatically from your bank account or credit card according to the repayment schedule that you’ve chosen.
Need more than $1,000? Find out about Zip Money
Features of shopping with Zip Pay
- 100% interest-free. Zip Pay doesn’t charge any interest on your transactions or outstanding balance.
- Low (and avoidable) fees. The $7.95 monthly fee applies only at the end of the following month from the date of your purchase. To avoid this fee, simply pay your purchase back in full before this date. A late fee of $5 applies if you do not make your minimum repayment within 21 days of the due date.
- Credit limits. Zip Pay offers a credit limit between $350 and $1,000. When you apply, the strength of your application will determine your maximum credit limit. This is based on the information you provide.
- Quick and simple sign-up process. Simply visit Zip’s sign-up page and use a valid Facebook, PayPal or bank account to get set up.
- Instant use. Once you’ve completed the quick sign-up process and are approved, your Zip Pay account is immediately available to you. To activate it, you just need to verify the SMS code, link a payment method and accept the T&Cs.
- Available at thousands of stores across Australia. Zip Pay is available at thousands of stores across Australia. And with the Zip card in Apple Pay or Google Pay, you can shop just about everywhere.
- Very flexible repayment plans. As long as you meet the minimum required $40 monthly repayment, you can set up repayments as you like. You can choose to pay off your loan weekly, fortnightly or monthly for any amount you choose.
- Automatic deductions. You can set up a direct debit to automatically deduct repayments from your bank account or credit card according to the repayment schedule you’ve set up.
- Tap to Pay. With your Zip account you can use your phone to tap and pay for everyday expenses like petrol or groceries. This feature can be used anywhere contactless transactions can be made.
How much will this cost?
Zip Pay doesn’t charge any interest on your balance. In addition, there are no establishment or annual fees.
- Initial fee-free period. No fees are charged during your first billing cycle. The billing cycle runs from the day you’ve made the purchase until the end of the following month for a maximum duration of 60 days.
- Minimum required $40 monthly repayment. Although this isn’t a fee, Zip Pay does require a $40 minimum monthly payment to be made towards your balance each month.
- Monthly repayment for a limit more than $1,000. You will need to make a minimum repayment of $80 each month if your credit limit is over $1,000 with Zip Pay.
- Monthly service fees. After the fee-free period, if you don’t pay your balance in full, you’ll be charged a flat $6 service fee on the first of every month that you have an outstanding balance.
- Late fees. Zip Pay may charge a late fee of $5 when you’ve made no repayments for more than 21 days (not including the initial fee-free period).
Signing up with Zip Pay
To sign up for Zip Pay, you’ll need to meet the following criteria:
- Be an Australian citizen or permanent resident
- Have a valid and verifiable mobile phone number and email address
- Be at least 18 years of age
- Have a verified Facebook, PayPal or online banking account in your own name
- Have a good credit history
Once you’ve signed up with your basic information, you’ll get a response within seconds, and after approval you can immediately begin shopping with Zip Pay.
Should you offer Zip Pay (for store owners)?
As a business owner, offering Zip Pay or any other interest-free payment service as an option at checkout can have a range of benefits and a few potential drawbacks.
- Increased sales. You'll have access to Zip's customer base who appreciate the convenience of Zip Pay. And businesses that currently accept Zip have seen a 30%+ increase in sales volume.
- Risk-free. Because Zip is covered for credit fraud, you're guaranteed payment after a transaction goes through from a customer.
- Same-day settlement. Zip ensures that every transaction that has gone through your business by 4pm is settled and paid the same day.
- No setup fees. There are no setup costs, ongoing account fees or lock-in contracts.
- Transaction fees. You'll be charged a maximum of 30 cents per sale. The actual fee you'll be charged is dependent on Zip's assessment of your business.
- Commission fees. You will be charged a merchant fee per sale. This will depend on the interest-free period you offer your customers. For example, if your merchant fee is 4%, for every $1,000 processed through Zip, you will receive $960.
- Lower credit limit. Zip Pay has a lower credit limit than Zip Money or some other interest-free payment providers, so you won't be able to make sales over $1,000.
Have more questions about Zip Pay?
How safe is Zip Pay?Zip Pay uses advanced Secure Socket Layer (SSL) encryption along with two-factor authentication on all purchases to protect your personal information and transactions.
How do I avoid fees?
Repay your purchase within the initial period (up to 60 days) to avoid the $6 monthly fee.
What's the difference between Zip Pay and Zip Money?
As mentioned above, Zip Pay has a credit limit of up to $1,000 and is always interest-free. Zip Money, on the other hand, is a line of credit for larger amounts of $1,000 and above. Zip Money offers customers a guaranteed 3 months interest-free and up to 36 months with some retailers.
How does the online account work?
You can sign into your Zip Pay shopping account to view transaction reports, adjust repayment schedules, make additional payments, modify payment information and more.