Buy Now, Pay Later (BNPL) provider Zip has partnered with Google Pay to enable merchants in the US who accept Google Pay online to integrate its Zip Pay-In-4 service.

The partnership follows research by Zip which it said highlighted the growing relevance of BNPL services in consumer spending. According to the study, which surveyed around 3,000 people, approximately 41 per cent of Americans report that BNPL options have enabled them to manage holiday expenses more effectively.

While the method has become more popular during the cost-of-living crisis, Citizens Advice recently warned that many consumers using the service who are often already facing tough financial situations are at risk of being exposed to unmanageable levels of debt and even bailiff action, largely because unlike other credit options BNPL lending generally doesn’t require affordability checks.

“Consumers are increasingly seeking flexibility at checkout, while merchants are looking for innovative ways to boost sales and enhance customer loyalty,” said Zip co-founder and US chief executive Larry Diamond. “With Zip available in the Google Pay checkout experience, we are bridging a gap and providing a flexible credit product for the many consumers overlooked by traditional credit products.”

During a pilot phase rolling out in January 2024, when shoppers tap the Google Pay online checkout button on select merchant's Android apps, they will see a promotional banner within Google's home screen letting them know that the Zip BNPL option is available.

“We are always looking for ways to give people a more helpful checkout experience when shopping on Google,” commented Drew Olson, senior director at Google Pay. “By teaming up with BNPL providers like Zip, we are able to give Google Pay users another payment option when checking out, while providing merchants with another tool to drive their growth.”

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