Omari Gates
Zip Money is a buy now, pay later (BNPL) service that allows users to spread the cost of their in-store or online purchases. Zip Money is a line of credit with credit limits over $1,000, offering a guaranteed interest-free period of 3 months across all products and up to 60 months with some retailers. Zip Money accounts incur a monthly account fee of $9.95 when there is an outstanding balance at the end of each month, as well as a one-off establishment fee of up to $100 for new customers. Zip Money is available for spending between $1,000 and $5,000, with the option to pay in instalments at a frequency of choice (weekly, fortnightly, or monthly).
| Characteristics | Values |
|---|---|
| Type of Service | Buy Now, Pay Later (BNPL) |
| Number of Customers | 2 million+ |
| Presence | 13 global markets |
| Credit Limit | $1,000 to $5,000 (up to $50,000 for specific retailers) |
| Interest | Not 100% interest-free. A variable rate of 25.9% p.a. after an initial 3 months interest-free period. |
| Interest-Free Period | 3 months guaranteed, up to 60 months with some retailers |
| Monthly Account Fee | $9.95 (waived if no outstanding balance) |
| One-off Establishment Fee | $0 - $99, up to $100 for new customers |
| Instalment Fee | 1.5% of the transaction amount per month for extended interest-free periods |
| Late Fee | $15 if the minimum repayment isn't made, charged 7 days after the due date |
| Foreign Exchange Fee | 1% of the value of the foreign transaction |
| Minimum Monthly Repayment | $40 |
| Payment Options | Weekly, fortnightly, monthly |
| Sign-up Requirements | Australian bank account, driver's license, home address |
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What You'll Learn
Zip Money vs Zip Pay
Zip is an app-based buy now, pay later (BNPL) platform that can be used both in-store and online. Zip offers two products: Zip Pay and Zip Money. Both Zip Pay and Zip Money are accessible from the same Zip app, available for free on Google Play and the App Store.
Zip Pay offers credit between $350 and $1000 for "everyday spending" that can be spent at participating retailers where contactless payments are accepted. Zip Pay allows customers to buy a product, receive it straight away, and pay it off over time. Repayments can be made weekly, fortnightly, or monthly, with a minimum repayment of $10 per week. Zip Pay is interest-free, but there is a $7.95 monthly fee when you have money owing at the end of the month, as well as late fees or dishonour fees for missed payments.
Zip Money, on the other hand, is meant for purchases worth more than $1000. Zip Money has higher limits and is a line of credit that acts more like a credit card. Zip Money offers customers credit of over $1000 with no interest charged for at least three months, depending on the retailer. Any unpaid balance will be charged interest after this interest-free period, with the rate currently set at 19.9%. The maximum you can borrow with Zip Money can vary between $3000 and $5000, but customers can borrow up to $50,000 for purchases with some retailers. A service charge of $7.95 is charged every month for the duration it takes to repay the borrowed amount in full.
When shopping online, the checkout process is the same for both Zip Pay and Zip Money. You will need to confirm that the merchant allows customers to "Pay with Zip", add the items to your cart, and select Zip as your payment option. When shopping in-store, the payment process is different for Zip Pay and Zip Money. Zip Pay can be added to your digital wallet on your phone, such as Apple Pay or Google Pay, and then used to tap and pay at the store counter. To pay using Zip Money at stores, you need to generate a barcode using the Zip app, which can then be scanned at the store's checkout counter.
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Interest rates and fees
Zip Money is a buy-now-pay-later service that offers customers a line of credit for purchases over $1,000. Every Zip Money transaction has a minimum interest-free period of three months, but some retailers may offer longer periods. If you do not repay your purchase in full within the interest-free period, you will be charged interest on the remaining balance.
Zip Money's standard interest rate is 19.90% per annum for new customers, but this may vary depending on the retailer. As of 1 May 2023, the standard variable interest rate was 25.9% per annum. Interest rates, fees, and charges are subject to change.
Zip Money may charge a monthly account fee of $9.95 if you have an outstanding balance at the end of the month. This fee is waived if you pay your closing balance in full by the due date. A one-off establishment fee may also be charged for new customers.
There is also a $6 account-keeping fee if you do not pay off your account balance each month. If you don't make your minimum repayments on time, you may be charged a $15 late payment fee, and your credit score could be negatively impacted.
Zip Money does not have early repayment penalties, and you can make additional payments at any time. However, these additional payments will not stop or replace your scheduled payments unless you manually change your payment schedule.
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Credit limits
Zip Money offers credit limits ranging from $1,000 to $5,000 for direct applicants and up to $50,000 through one of Zip's partnered retailers. The credit limit available to each customer is subject to a satisfactory credit check and approval.
Zip Money provides flexible repayment options for small and large purchases, allowing customers to pay on their own schedule. The minimum monthly repayments vary depending on the credit limit and can be set up to be paid weekly, fortnightly, or monthly. Autopay balance is also an option, which automatically repays the total owing balance at the end of each month, avoiding interest and monthly account fees.
A monthly account fee of $9.95 is charged if the total balance is not paid in full by the end of the calendar month. Additionally, a one-off establishment fee of up to $99 may apply, depending on the approved credit limit.
Zip Money also offers Zip Plus, which provides up to $8,000 in credit for everyday purchases. Zip Plus has no international transaction fees and a low-interest rate. When switching to Zip Plus, any owing balance on a Zip Pay account will be transferred to the new Zip Plus account.
It is important to note that interest, fees, and charges are subject to change, and customers are advised to review the Terms & Conditions and their contract for further details.
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How to sign up
To sign up for Zip Money Australia, you must be an Australian Citizen or Permanent Resident and be at least 18 years old. You can apply for a Zip Money account in minutes via the online application form on the Zip website.
Once you have completed your application and it has been approved, you will need to activate your account by accepting the terms and conditions. To do this, you will need to visit the Zip website, enter your mobile number, and follow the prompts. You will then need to link a valid payment method to your Zip account.
After your account is activated, you can start shopping with Zip Money. Zip Money offers a guaranteed interest-free period of 3 months across all purchases and up to 5 years with some Zip retailers. A $9.95 monthly account fee applies, which is waived if nothing is owed at the end of each month.
You can choose to make repayments on a weekly, fortnightly, or monthly basis, as long as you are covering the minimum monthly repayments. The minimum repayment for each time period is equivalent to $10 per week. If you are late with a repayment, a one-time fee of $5 will be applied.
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Accepted payment methods
Zip Money is a Buy Now, Pay Later (BNPL) service that allows users to spread the cost of their in-store or online purchases. It is a line of credit offering credit limits of $1,000 to $5,000 when applying directly and up to $50,000 through one of Zip's partnered retailers.
Zip Money accounts incur a $9.95 monthly account fee when there is an outstanding balance at the end of each month, as well as a one-off establishment fee of up to $100 for new customers. There is also a minimum monthly repayment, which is from $40. Repayments can be made weekly, fortnightly, or monthly. Zip Money is not 100% interest-free. Each transaction has a guaranteed interest-free period of three months, after which, interest is charged at a standard variable rate of 25.9% per annum.
Zip Money accepts payments from Australian bank accounts that allow for automatic repayments. It is the only payment method they accept, with the exception of BPAY when it comes to using the extra repayments feature.
Zip Money can be used in over 43,000 stores, including some of Australia's biggest and most popular brands, such as JB Hi-Fi, Bunnings, Apple, Kmart, Target, Officeworks, and Kogan.
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Frequently asked questions
Zip Money is a "Buy Now, Pay Later" (BNPL) service that allows users to pay for purchases over time, rather than upfront. Zip Money is a line of credit offering credit limits of $1,000 to $5,000, or up to $50,000 through Zip's partnered retailers.
Zip Money enables shoppers to spread the cost of their in-store or online purchases. Once a purchase is made, Zip Money pays the upfront cost to the merchant, and the shopper repays Zip Money in instalments (weekly, fortnightly, or monthly) until the balance is cleared.
Signing up for Zip Money is easy and can be done on the official Zip website or through its app. Zip will need to confirm your ID, so you'll need to provide your driver's license number, bank account details, and home address. You must have an Australian bank account that allows automatic repayments.
Zip Money accounts with credit limits of $1,000 and above incur a monthly account fee of $9.95 if there is an outstanding balance at the end of the month. There is also a one-off establishment fee of up to $100 for new customers. A late fee of $15 is charged if the minimum repayment isn't made after 7 days from the due date.
Zip Pay is an interest-free BNPL service with credit limits up to $1,000. Zip Money, on the other hand, has higher credit limits and charges interest after an initial interest-free period. Zip Money is suitable for larger purchases, while Zip Pay is designed for smaller purchases.
