Zip pay is a popular digital wallet and buy now pay later service in Australia that allows users to pay for purchases in installments over time. With Zip pay, customers can split their payments into four equal fortnightly payments without any interest. This makes it an attractive option for managing larger purchases without having to pay the full amount upfront. But can Zip pay be used in store at any retailer? Let’s take a closer look at how Zip pay works and where it can be used for in store purchases.
What is Zip Pay?
Zip Co Limited operates the Zip pay service in Australia. It provides customers with a digital wallet app that lets them pay for purchases now and split the cost into four interest-free payments made every two weeks. Users need to be approved for a Zip pay account, which involves a quick credit assessment. Approved users are given a spending limit based on their credit profile.
To use Zip pay in stores, customers add an eligible Visa or Mastercard debit or credit card to their Zip pay app. They can then select ‘Zip pay’ at checkout to tap and pay or use the Zip pay barcode in their digital wallet. The purchase amount gets split automatically into four installments charged to their linked payment card every two weeks. There are no late fees or interest, but missed payments can affect the user’s credit score.
Zip pay can also be used for certain online purchases. The Zip pay logo or option may be displayed on ecommerce sites. Customers can choose Zip pay at online checkout to get the same installment plan.
In addition to Zip pay’s core four-payment plan, they also offer other flexible financing options like Zip Money which allows up to $15,000 interest-free credit and longer repayment terms of up to 24 months.
Where Can You Use Zip Pay In Store?
Zip pay is available at a wide range of major retailers across Australia. As of January 2023, Zip pay claims to have over 50,000 retail partners in-store and online. However, Zip pay is not universally accepted at all stores in Australia.
Some of the major retail chains and brands that accept Zip pay in store include:
- Coles
- Woolworths
- Bunnings
- Officeworks
- JB Hi-Fi
- Baby Bunting
- Chemist Warehouse
- Petbarn
- Nike
- Pandora
- Sunglass Hut
- Michael Hill Jewellers
In addition, many other independent and specialty stores across the country have integrated with Zip pay for in store payments. Types of stores that often accept Zip pay include:
- Fashion and clothing boutiques
- Furniture and homewares stores
- Electronic and appliance retailers
- Sporting goods shops
- Department stores
- Jewelry stores
- Shoe stores
How to Check If a Store Accepts Zip Pay
The easiest way to check if you can use Zip pay at a particular retailer is to look for the Zip pay logo around the store or at the cash register. This indicates that Zip pay is accepted as a payment method.
You can also ask the sales associates or customer service desk if the store takes Zip pay for in store purchases. They will be able to confirm if Zip is available.
Searching the store’s website is another way to find their payment options. Most major chains list Zip pay on their online payment pages if it is offered in store. For smaller retailers, you may need to contact them directly to ask.
Additionally, you can check the Zip pay store locator on their website or mobile app. This shows a map of thousands of Zip partner locations across Australia. Simply enter your location to see nearby in store and online stores accepting Zip pay.
Pros of Using Zip Pay In Store
There are several advantages to using Zip pay for in store shopping:
- Split costs over time – The four installments let you spread the purchase price over 8 weeks interest-free.
- Better cashflow management – Zip pay gives you more flexibility with expenses rather than paying 100% upfront.
- Pay for big purchases – Afford items like furniture or electronics without the large one-time hit.
- Budget control – Paying in installments can help you stick to a budget and not overspend.
- Earn rewards – Points, frequent flyer miles, or cashback can accumulate on your linked Zip payment card.
- Tap and go simplicity – Checking out with Zip pay is fast and convenient by tapping your phone.
Using Zip pay instore essentially gives you an interest-free loan to spread out the cost of your purchases over time. This can make managing expenses easier and allow you to buy the items you want.
Cons of Using Zip Pay In Store
While there are benefits, some potential downsides of Zip pay to consider include:
- Missed payment fees – Late or missed payments incur a $10 fee per installment.
- Credit impact – Missing repayments can negatively affect your credit history.
- Overspending risk – The ease of installment payments may tempt some to overspend.
- Not available everywhere – Zip pay is not universal so you can’t rely on using it at all stores.
- Credit checks – Signing up requires a soft credit check which can impact your credit score.
- Limits – Maximum spending limits may restrict purchases of higher value items.
The main risks are taking on debt you can’t repay in the short timeframe and damaging your credit profile. Responsibly staying within your budget is important when using buy now, pay later services like Zip pay.
Which Major Retailers Don’t Accept Zip Pay?
While Zip pay is widely available, there are some major retailers that currently don’t accept it as a payment method. Some key exclusions include:
- ALDI
- Costco
- Myer
- David Jones
- Kmart
- Target
- Big W
- IGA
- 7-Eleven
Most of Australia’s major supermarkets and department stores have their own financing programs and layby systems, so they don’t offer third party services like Zip pay.
Many smaller independent grocery stores, liquor stores, pharmacies, and quick service outlets also often don’t have Zip pay. It tends to be accepted more widely among specialty retail categories like fashion, sports, furniture, jewelry, electronics, etc.
Will More Retailers Accept Zip Pay in Future?
Zip continues to expand its retail network across Australia, so the company is likely to keep onboarding more merchants in future. New brands and chains are consistently added, bringing Zip pay to more physical and online stores.
As buy now, pay later services grow increasingly popular, smaller businesses may feel pressured to offer Zip and other platforms like Afterpay to remain competitive. This could see further growth in acceptance, especially among independent and mom-and-pop type stores.
However, major national chains like supermarkets and department stores tend to stick with their own financing programs. So the big retailers currently not accepting Zip pay are unlikely to adopt it unless a strategic partnership develops in future.
Tips for Using Zip Pay In Store
If you plan to use Zip pay for in store shopping, keep these tips in mind:
- Check if the store accepts Zip pay upfront before going to checkout.
- Save your Zip pay barcode in your digital wallet for easy scanning.
- Have an eligible Visa or Mastercard linked to Zip to split your purchase.
- Know your available Zip pay spending limit before shopping.
- Avoid missing repayments or you may incur fees.
- Monitor your overall spending when using Zip pay frequently.
- Pay off full purchase amounts early if you can afford it to avoid installment debt.
- Look for exclusive Zip pay discounts at partner brands and retailers.
Using Zip’s app makes accessing your account, scanning your barcode, and tracking payments convenient. Ensure your linked payment card allows purchases of the total amounts before relying on Zip pay at checkout.
Conclusion
Zip pay gives Australian shoppers an interest-free way to split costs on purchases made in store and online. It can be used at most major national retailers except for the big supermarkets and department stores. Customers should check Zip’s store locator or ask the retailer directly if they accept Zip pay before shopping. While buy now pay later plans offer convenience and flexibility, shoppers should borrow responsibly within their budget.
