Zip Pay Review 2022: Buy Now, Pay Later

Adam K.

3 min read

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Zip, formerly known as Quadpay, is a Buy Now, Pay Later company that allows its customers to make purchases with 4 interest-free payments.

Overall Rating

Adam’s View

While Zip Pay offers a wide variety of retailers in addition to interest-free repayment plans, it will be pretty challenging for your average customer to avoid the additional fees that come along with the service. There may be better options using another Buy Now Pay Later company – Affirm.

At A Glance

  • Customers split purchases into 4 interest-free payment plans, paid every 2 weeks.

  • Monthly account fee of .95

  • Late payment fees start at

  • Available at 45,000 retailers online and in-person such as Amazon, Target, Walmart, and Macy’s

  • No hard credit checks

  • On-time payments will not help build your credit

  • Late payments will automatically be sent to collections after a certain period elapses


 0% Interest X Monthly account fee of .95
 Available at big-box retailers. X  fee platform fee per installment payment
 In-store and online purchases X Late fees starting at

Who Should Use Zip?

Zip Pay is a good option for:

You do not qualify for a credit card.
You want to finance smaller purchases and can avoid the fees.

Zip Pay is not a good option for:

  • People looking to build their credit
  • You have poor credit history and trouble making on-time payments
  • Financing purchases larger than ,500

What Is Zip?

Zip is a global payments company founded in 2013 and headquartered in Sydney, Australia.

Like its predecessor Quadpay, Zip offers a buy now, pay later payment platform that provides customers an interest-free payment plan through 4 bi-weekly installments.

Zip serves 6 million customers across five contents and is offered by over 45,000 merchants. In addition, the company is publicly traded on the Australian Stock Exchange and is known as a pioneer in the Buy Now, Pay Later category.

How Does Zip Work?

Zip’s most popular service is Zip Pay. With Zip Pay, customers can split purchases into 4 interest-free payments. 25% of the purchase amount is due at checkout, and the remaining balance is paid in 3 installments every two weeks.

If you are approved to use Zip Pay, they offer credit limits between 0 and ,500. As with most BNPL companies, your available credit limit may be in the lower range until you have established a successful repayment history with the firm.

While there are no interest charges, Zip does charge a platform fee for every installment payment and a .95 monthly account fee if your balance statement balance is not paid, in full, by the due date.

Zip Pay Vs. Zip Money

Zip’s most popular payment plan is ‘Zip Pay,’ which is for purchases less than ,000 and is interest-free. However, Zip also offers ‘Zip Money,’ a service for transactions greater than ,000. Zip Money is only interest-free for 3 months, among other differences.

Let’s take a look below.

Feature Zip Pay Zip Money
Good For Everyday spending Large purchases
Spending Limits 0 – ,000 Greater than ,000
Interest Charges 0% interest Interest-free for 3 months, (19.9% thereafter)
Repayment Amount Starting at Repayments from per week or 3% of the outstanding balance (whichever is greater)
Monthly Account Fee .95 .00
Late Fees Yes. , , or depending on your state of residence Yes. , , or depending on your state of residence
Platform Fees installment payment
Establishment Fee Pay nothing to sign up. One-off account establishment fee
A sign-up fee, which depends on the limit.
Other Features Some purchases qualify for promotional interest-free periods (up to 60 months)

Monthly Account Fees Explained

A monthly account fee of .95 applies for Zip Pay and for Zip Money. This fee is waived each month you pay your statement closing balance, in total, by the due date. Available to approved applicants only.

Honestly, this isn’t very clear. Zip Pay is advertised as interest-free. However, you will be charged an account fee if you do not pay off your closing balance at the end of the statement month.

That said, if you pay bi-weekly over 6 weeks, you inevitably will have to pay the account fee because the average statement period is around 30 days.

Let’s Break It Down:

Purchase Amount: 0

Repayment Method: Bi-weekly

Payment 1 October 1st (Purchase Date): 0

Payment 2 October 15th: Amount Due: 0

Payment 3 October 22nd: Amount Due 0

Date: November 5th, 2021: Amount Due 0

Using the assumptions above, you did not pay off your balance before your closing date of November 1st, so you would owe .95.

To avoid the monthly fee, pay off your balance by October 31st.

Repayment Amounts Explained

Zip Pay: You have the ability to change the frequency of your payments to weekly, bi-weekly, or monthly, as long as you pay the minimum of per month.

Is Zip Really Interest-Free?

Yes, Zip is interest-free, but there are fees. A monthly .95 fee applies if you do not pay off your balance by the end of your closing period. There is also a per installment payment fee.

Alternatives To Zip

  • Klarna (Allows customers 3 methods of financing including interest-free financing.)
  • Afterpay (Allows customers to split into 4 interest-free payments for purchases as small as ). The average purchase size using Afterpay is 0. They do not charge interest but have late fees. Each purchase must be approved.
  • Affirm Customers can make larger purchases often with fees and also allow in-store purchases using Affirm.
  • Sezzle is Available for online-only purchases. Not available at many big-name retailers

Frequently Asked Questions

Real World Investor


Adam is the founder of, an investing website dedicated to helping discerning individuals make the best investment decisions.

Before starting Real World Personal Finance, he was a Senior Vice President at one of the country's largest investment banks. He has over 10 years of experience working in financial services. His experience includes working with complex derivatives while spending many years working on a trading floor.

He has a bachelor's degree in Business Administration, majoring in finance.