Zip x Jetstar partnership announced as travel demand peaks

Australia’s biggest buy now, pay later (BNPL) platform Zip Co has announced a collaboration with leading low fares airline Jetstar.

With economy air fares at their highest since 2007, Zip Co (ASX:ZIP) has announced an expansion of its Qantas partnership that will see its offering available for customers of low fares airline Jetstar.

Zip’s managing director for ANZ Cynthia Scott says the partnership has been finalised at the ideal time for eager travellers.

Sky high demand

“We know our customers are ramping up to travel – especially as we enter into the holiday season – so we are thrilled to be partnering with Jetstar to provide travellers with more flexible ways to pay for their fares,” Scott said.

“Plus, having already partnered with Qantas in May, this was the obvious next step as we expand our presence in the travel space.

“We are also particularly excited to give travellers access to our Zip Money product for those larger purchases – with up to 6 months interest free over this busy holiday period. We are proud to offer innovative solutions to better help customers budget and manage their cash flow.”

Both Zip Pay and Zip Money will be available for eligible Jetstar customers. Zip Pay allows customers to flexibly pay for purchases of up to $1,000 (interest free), while Zip Money facilitates purchases of up to $10,000 (up to 6 months interest free).

Recent Zip data showed that more than 90% of Australians are planning to book a trip or have a holiday planned in the next 12 months. The data also revealed that BNPL users are also more likely to travel in the next 12 months compared to the average Australian over 18, and 57% said they would also consider using Zip to pay for travel and accommodation.

Big name partners

The leading buy now, pay later provider also recently announced its partnership with Australia’s largest online shopping site eBay.

Early in October Zip co-founder and global CEO Larry Diamond headed to the US to accelerate growth in one of its core markets.

The ANZ business has been cash flow positive for four years with a record profit recorded in FY22. Zip signed 400,000 net new customers during the period growing its base to 3.2 million, and it also signed huge enterprise merchants JB Hi-Fi, Virgin Australia, and eBay.

This article was developed in collaboration with Zip Co, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.