InComm, Zip Partnership Brings Buy Now, Pay Later to Gift Cards

Active Customers (Zip)

4.6 million

Number of active customers Zip has in the US.

Transaction Volume (InComm)

$65 billion

Annual transaction volume facilitated by InComm.

Retail Distribution Points (InComm)

525,000

Number of retail distribution points managed by InComm.

§ 01 Executive Snapshot

What: Zip partners with InComm Payments to introduce Buy Now, Pay Later (BNPL) functionality for gift cards.
Who: Key players include Zip, an Australian digital financial services company, and InComm Payments, a global payments firm based in Atlanta.
Why it matters: This partnership meets the rising consumer demand for flexible payment options, expanding BNPL use in the gift card market.

The integration allows eligible consumers to buy gift cards directly through the Zip app with BNPL options.
Zip currently has 4.6 million active customers in the US and 29,000 merchant partners who will benefit from this new payment flexibility.
InComm manages over one billion cards annually, facilitating $65 billion in transaction volume each year.

BNPL has seen significant growth, with US consumer usage rising from 10% in 2021 to 15% in 2024, reflecting a shift in consumer payment preferences.
The partnership aligns with the trend of integrating innovative payment solutions into traditional retail categories, such as gift cards, enhancing consumer convenience.

Immediate consequence includes increased foot traffic and sales for merchants offering gift cards via Zip's BNPL, potentially boosting overall transaction volumes.
Long-term implications may involve expanded adoption of BNPL in various retail sectors, reshaping consumer spending behaviors.

Regulatory scrutiny around BNPL offerings could pose challenges for Zip and InComm in terms of compliance and operational execution.
Competition from other fintech firms and traditional payment solutions may limit market share growth for Zip's BNPL offerings.

Upcoming milestones include the rollout of Zip's ZMobile prepaid mobile plan to existing customers, which may impact brand engagement.
Monitoring consumer adoption rates of BNPL for gift cards will be crucial to assess the success of this partnership in the coming months.

§ 07

What is the new feature introduced by Zip and InComm?

Zip has partnered with InComm Payments to introduce Buy Now, Pay Later (BNPL) functionality for gift cards.

Who are the key players in this partnership?

The key players include Zip, an Australian digital financial services company, and InComm Payments, a global payments firm based in Atlanta.

Why is this partnership significant?

This partnership meets the rising consumer demand for flexible payment options, expanding BNPL use in the gift card market.

How does the BNPL integration benefit consumers?

Eligible consumers can buy gift cards directly through the Zip app with BNPL options, providing them with more payment flexibility.