Zip, an Australia-based buy now, pay later (BNPL) firm, has begun working in cryptocurrency, the Financial Review reported. The company compared the innovation in the medium to the internet in 1995.
Zip will let its merchants accept bitcoin as a form of payment and is integrating cryptocurrency trading functionality, according to the report.
Co-Founder Peter Gray said earlier in the year that Zip users’ top requests had included crypto trading support and a digital wallet, the report stated. Internal research at the company found BNPL users were 67% more likely to trade crypto than those not using BNPL.
Zip will also be rolling out “BitcoinBack” in 2022, a feature letting customers convert cash rewards into bitcoin, according to the report.
While these offerings are set to roll out in the U.S. next year, Zip plans to debut them in 12 global markets overall, including in Australia, in the next year or year and a half, the report stated.
BNPL is a sales driver, Sezzle CEO Charlie Youakim told PYMNTS earlier this month.
Youakim said BNPL could even be a driver of traffic in physical stores, not just online ones. Small businesses can make additional sales, with the increase coming from budget-conscious customers who otherwise might decide to err on the side of caution.
“It’s almost like a creditized debit card in a way, but it’s safe and predictable because of its planned-out purchases,” he said. “We give access to typically lower-spectrum consumers. Our average customer is 50% below a 600 FICO, and 15% of our customer base has no FICO score whatsoever. So, it gives a bit of reach to these customers and allows them to get started again.”