Zip Co. Limited has joined forces with WebBank to introduce Zip Card, a physical card that offers shoppers the buy now, pay later (BNPL) company’s four installment payments option, according to a Thursday (Nov. 4) press release.
As part of the collaborative effort, WebBank, which is headquartered in Salt Lake City, will serve as the lender to Zip Card customers. Zip, formerly known as Quadpay, plans to begin shipping Zip Cards soon and throughout 2022, according to the announcement.
“Zip Card is the next step in delivering on our mission to be the first choice of payment for consumers everywhere they shop – whether it’s online or in-store,” said Zip U.S. Co-CEO Brad Lindenberg. “Our partnership with WebBank further validates that flexible payment options are a win-win for both consumers and merchants and will continue to shape shopping habits well beyond the pandemic and this holiday shopping season.”
Close to 6 million U.S. shoppers use Zip’s BNPL virtual offering to shop at big box retail stores, restaurants and more, according to the company. Shoppers can download the Zip app for iPhone or Android to sign up. Once downloaded, shoppers can request a physical card and begin shopping in-store or online with the virtual card. Payments can be automatically made from the shopper’s linked debit card every two weeks.
The Zip Card launch follows on the heels of Zip’s recent collaboration with the Blackhawk network to enable gift card purchases from within Zip’s platform, according to PYMNTS. That undertaking will provide shoppers with the availability to purchase gift cards from the more than 500 retailers that are partnered with Blackhawk.
Zip’s new BNPL offerings are aimed at leveraging the holiday shopping market as Black Friday approaches. Last week, Zip said it recorded a 130% year-over-year boost in sales and a 16% month-over-month increase as nearly 250,000 consumers shopped with the Zip app during the company’s Zip Fest shopping extravaganza last month, according to PYMNTS.