Marqeta’s modern card issuing platform powers Zip’s innovative approach to credit card alternatives
Marqeta , the global modern card issuing platform, announced a continued partnership with Zip Co. in Australia, completing the first year of powering the global Buy Now Pay Later (BNPL) company which provides fast and seamless solutions that simplify how people pay, everywhere.
“Marqeta was a key part of this major initiative, which has helped us significantly grow our customer base and capitalise on the in-store opportunity.”
Marqeta’s modern card issuing platform is built with open APIs and has enabled Zip to bring new payments products to market faster, offering customers a line of credit attached to their account rather than an installment plan. Customers can make multiple transactions using their Zip Pay account, but repay their Zip balance with a single installment plan, creating a more streamlined user experience. Zip customers have grown strongly over the last 3 years, and now reach over 2.8 million users in Australia and 7.3 million globally, according to Zip. Both companies have seen significant growth and momentum last quarter: Zip cited 176% growth in transactional volumes of AUD, up to $5.8 billion, while Marqeta reported a 350% year-over-year increase in BNPL net revenue for Q2 2021.
In addition, Zip offers a “Shop Anywhere” product that issues a single-use virtual card in the Zip app that enables customers to spend money anywhere in the world that accepts Visa. According to Zip, its transaction volume has grown significantly in the 12 months since partnering with Marqeta.
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“Zip is a customer-focused company and customers told us loud and clear they wanted to be able to use their interest-free Zip BNPL account anywhere, and that is what Zip introduced with Tap & Zip,” said Hamish Moline, Zip’s Managing Director, Asia and Global Payments. “Marqeta was a key part of this major initiative, which has helped us significantly grow our customer base and capitalise on the in-store opportunity.”
“We’re proud to support a fast-growing Australian business that is changing the way people shop and revolutionizing payments at the point-of-sale,” said Duncan Currie, Country Manager for Australia and New Zealand, Marqeta. “Our partnership with Zip shows off our product market fit in Australia and New Zealand, and how our platform can help innovators grow their customer base and capitalize on the expanding BNPL opportunity. The flexibility of Zip’s offerings is a testament to the power of modern card issuing, and we’re excited to support their global expansion.
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