Technology giant Microsoft recently announced its partnership with Australian buy now pay later (BNPL) provider Zip where the company will embed the BNPL option in its Edge browser and users can enter an online checkout page for any purchase between $35-$1000, according to media reports.
Customers will be able to sign up through the Zip App for single-use digital credit cards, which can be used to purchase Microsoft products. Through the Microsoft store, customers will now have that option to purchase Office products as well as Surface laptops and tablets and Xbox consoles and games. The single-use credit cards will offer customers a 12-month interest-free payment solution, where customers will be able to choose between flexible weekly, fortnightly or monthly repayment options.
Australia has one of the largest global markets for BNPL services, that account for over 35 percent of consumers enjoying interest-free instalment payment plans. Zip also mentioned that the partnership is designed to give customers greater access to Microsoft products, and will particularly cater to students.
Zip also mentioned that this partnership will also empower Australians to do more with their money, which allows them to shop with more confidence without affecting their innovation and performance. Additionally, Microsoft also plans to extend the BNPL offers from customers to retailers and small businesses in the near future, along with launching BNPL in other markets.
Prior to this, Zip has joined Adobe’s Exchange Partner Program, where its BNPL services will be made available to thousands of eCommerce merchants using the Magento platform. This deal will allow Magento merchants to implement BNPL capabilities with ease during checkout, which will help improve cash flow, increase order value and promote customer loyalty.