- Zip Co (ASX:Z1P) announces new product allowing users to pay with Zip through Apple & Google Pay
- Afterpay (ASX:APT) becomes the first fintech to join Westpac’s new digital banking platform allowing integration with personal finances
- Both companies rise modestly but Afterpay has surpassed $100 for the first time
Afterpay (ASX:APT) and Zip Co (ASX:Z1P) just made using their buy now pay later platforms that little bit easier for users.
The BNPL giants unveiled deals that at face value are different but both make their platforms more integrated with everyday finances.
Zip estimates that only 13 per cent of stores in Australia accept buy now pay later options. While this may be less of a problem online, it can be in brick and mortar stores which see 87 per cent of broader retail payments.
Use Zip just like a Visa card
But Zip’s announcement this morning changes all that, launching a new “Tap and Zip” feature which will enable Zip users to shop as seamlessly as using a credit card so long as the relevant outlet accepts Visa cards.
Tap and Zip will be available through both Apple and Google Pay, meaning you’ll be able to use it as easy as any other integrated card.
Zip co-founder Larry Diamond said not being able to use Zip in digital wallets was a pain point for customers. In that context, he declared today’s announcement completely changed the competitive landscape.
“This is a huge day for Zip and the Australian retail sector,” Diamond said.
“Tap and Zip is a new way for customers to pay that will dramatically increase in-store transactions and conversion rates for thousands of retailers and merchants around the country, many of whom have been significantly impacted over the past year.”
Zip shares rose 3 per cent today. But they are up 77 per cent in the last year and over 1,000 per cent in the last three years.
Zip Co (ASX:Z1P) share price chart
Afterpay, Westpac do a deal
Afterpay (ASX:APT) meanwhile did a deal with Westpac (ASX:WBC) which will allow Afterpay users to access Westpac transaction and savings accounts and other cashflow management tools.
Westpac has been planning a new digital banking platform for several months now and Afterpay is its first customer.
CEO Peter King said the deal was part of the bank’s long-term strategy to support banking changes fuelled by fintech innovation.
“The platform allows us to combine our banking experience with the innovation of our partners to support new customer experiences,” he said.
Broking platform Bell Direct told its clients the deal was important because it represented “a new flag in the sand” and clearly distinguished it from other BNPL providers in focusing on cashflow management.
“It is moving with a distinct jolt that it is going after more of the banking value chain, starting with deposits,” they said.
Afterpay shares hit $100; CEO hints at more deals
Afterpay’s CEO Anthony Eisen said the partnership offers cashflow management in a simple way.
“We believe Australians deserve greater support and insight to help manage their money,” he said. “Afterpay is in a unique position to extend and deepen the relationship with our customers and help them to manage their money more seamlessly through savings and budgeting tools.”
Eisen also hinted more deals were to come, noting: “For Afterpay, this is clearly just the beginning as we explore this opportunity globally.”
Like Zip shares, Afterpay shares only rose modestly this morning but surpassed $100 for the first time this morning.
For the record, Afterpay listed at $1 at its May 2016 IPO.
It reached a high of $39.44 in February before the COVID-19 crash, when it dropped as low as $8.90 on March 23. Since then it is up over 1000 per cent.
Afterpay (ASX:APT) share price chart