Global Buy Now, Pay Later (BNPL) firm Zip is teaming up with all-in-one payments processor Adyen in a strategic partnership to widen their eCommerce reach, according to a press release emailed to PYMNTS on Thursday (Sept. 30).
Zip will offer the merchants in Adyen’s network the ability to integrate BNPL at checkout. Adyen will process all payments for Zip across a single platform and system, helping to boost point of sale (POS) revenue growth. Under the agreement, Adyen will become a payment processing partner for Zip and its global affiliates.
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Adyen President of Asia-Pacific Warren Hayashi said that Adyen was launched specifically to cater to the needs of global companies operating in the fast lane of digital change, which includes extending access to “alternative payment solutions” like Zip’s BNPL.
“Consumers are increasingly looking for more choice and transparency at checkout, and this partnership gives Adyen merchants the means to meet that demand, with transparent financing solutions from an innovative leader in BNPL,” Hayashi said.
Some of the biggest global retail and technology brands use Adyen’s streamlined single platform for payments processing and now will have the option of seamlessly integrating Zip.
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The BNPL space is growing worldwide, driving a 20 percent increase in sales, a 60 percent boost in average order value, and an 80 percent rise in repeat customer rate for some merchants, according to Zip’s data.
Zip CEO and co-founder Larry Diamond said that both Adyen and Zip were founded because of the need for alternative solutions to replace “outdated ways of doing things” that no longer worked.
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“We want Zip to be the first payment choice, everywhere and every day and working with leaders like Adyen will help us get there sooner, enabling us to reach millions more people worldwide with our fair, accessible and innovative payment solutions,” Diamond said.
Zip’s BNPL option will be offered to new and existing Adyen online merchants in Australia, New Zealand, the U.K. and U.S.