Zip Buy Now, Pay Later Reviews

Zip buy now, pay later reviews highlight a BNPL service that’s best for those making smaller purchases. Once also called Quadpay, Zip offers customers two ways to pay for purchases over time called Pay in 4 and Pay in 8. While the company claims that it charges no interest, it does apply an installment fee to each purchase, which essentially amounts to an interest charge.

However, Zip works well for many consumers, as evidenced by its high average satisfaction ratings. Compared against other BNPL apps, Zip just missed earning a spot in our best buy now, pay later companies review.

Zip Buy Now, Pay Later Reviews: Features and Benefits

Zip’s buy now, pay later purchasing options are available online and in stores, including virtually anywhere that Visa is accepted. The company’s most unique offering among BNPL providers is its physical Zip card. The card allows easy access to the Zip system while shopping in brick-and-mortar locations. You can also choose to use the app itself or the virtual card for online or in-store shopping.

• Two payment plans are available
• Physical Zip card available for in-store shopping
• Spending power can increase over time
• One free payment reschedule per month
• Additional payment reschedules cost $2
• Use anywhere Visa is accepted
• Use online or in-store
• Soft credit inquiry only

Zip Buy Now, Pay Later Reviews: Editorial Rating

Trusted Company Reviews Rating Score for Zip: 7.7

While Zip makes our list as one of the best BNPL providers available, it’s important to note that there are no options to use the service for free. Each purchase made using Zip will include an installment fee added in full at the time of purchase.

That’s not an unusual practice among providers. However, Zip loses some judgment points based on our rating criteria because it claims that it doesn’t charge interest when, in fact, it does, but it calls it by a different name.

Zip did score positive points, however, with its liberal installment payment rescheduling options. Zip allows you to reschedule one repayment date each month without penalty. If you need to reschedule more, you’ll be charged a $2 fee to do so, which is far less than the $7 late fee you’d face if you make the payment late instead.

What We Like

One feature that we really like about Zip’s buy now, pay later plans is that the company will pause or suspend your account and spending ability if you fall behind in payments. While it may not seem convenient at the time, this can act as a safeguard from overspending.

What We Don’t Like

While Zip doesn’t charge interest to your account, we were surprised to learn that it’s allowed to call its installment fee something other than interest. In fact, by charging an installment fee upfront at the time of purchase, the company doesn’t allow consumers to manage interest payments by paying off their debt early.

About Zip Buy Now Pay Later

Zip purchased Quadpay in 2020 and recently added its Pay in 8 program to complement its Pay in 4 option. Zip never performs a hard credit inquiry, and the soft inquiry it uses to determine your eligibility won’t appear on your credit reports and won’t affect your credit scores.

However, it also limits your spending power a bit more than some of its competitors. While spending limits vary, the general maximum amount available for the Pay 4 options is $2,500. New users will have a $1,000 cap for at least the first six months of using Zip.

Fees associated with using Zip buy now, pay later include an automatic and variable installment fee, ranging from $1.50 to $78, depending on the purchase price and which payment option you choose. You’ll always know your spending power limit by consulting the app, where the amount is listed.

How Does Zip Work?

Zip allows customers to choose their payment method. Both options offered require making an upfront initial payment of either 25% or 12.5% of the purchase plus an equal percentage of the installment fee.

The next due date will be two weeks later and equal another 25% or 12.5%, depending on whether you choose the Pay in 4 or Pay in 8 option. Zip’s buy now, pay later program offers no extended monthly repayment options, differing from many of its competitors.

Additionally, Zip doesn’t offer a subscription plan, as some of its competitors do, to help consumers avoid the installment fees.

Pay in 4

Zip buy now, pay later’s most traditional BNPL payment plan, the Pay in 4 option, includes making a 25% deposit at the time of purchase, plus a portion of the installment fee, and making three additional equal payments every two weeks for a total of four payments.

Pay in 8

Zip’s Pay in 8 option is identical to the Pay in 4 selection. However, your bi-weekly payments will each amount to 12.5% of your purchase total, plus the equal portions of the installment fee. Payments will continue for 14 weeks after making your purchase and paying the down payment, or initial payment, amount.

Zip Physical Card

If you wish to use Zip to make in-store purchases at retailers that aren’t in Zip’s merchant network, the company offers two solutions. You can use a virtual Zip credit card in your digital wallet, or you can use Zip’s physical card option. Both allow you access to the Pay in 4 installment agreement option and are available for use anywhere Visa is accepted.

Zip Eligibility Requirements

Despite Zip never making a hard inquiry on your credit, customers must meet a few basic requirements to use the Zip app.

• Be at least 18 years old
• Have a valid U.S. address
• Have a U.S phone number
• Have a valid U.S. debit or credit card

Zip Buy Now, Pay Later Reviews

While we have some criticisms of Zip’s buy now, pay later program, overall, customers are very happy with their experience using the Zip app. For one, the app itself earns 4.8 stars on average in the Play Store and 4.9 stars in the App Store. Additionally, the company earns 4.7 stars on Trustpilot, where 85% of reviewers award it a 5-star review.

Positive reviews often cite ease of use and convenience as the reasoning. Negative reviews, on the other hand, often mention billing errors and purchase declines after apparent approvals.

Who Zip Is Best For

Zip doesn’t perform a hard inquiry on your credit, making it a viable option for some consumers with less-than-perfect credit scores. However, the app only allows limited spending compared with some of its competitors. The Zip app is best for those who need to make smaller purchases, don’t wish to commit to a long-term payment agreement, and can handle the automatic installment fee added to their purchase.

Zip Alternatives

The Zip app can work for many consumers in many financial situations. However, other BNPL providers also offer similar and sometimes better, features. Some require a hard inquiry for longer-term agreements, and some allow greater spending. That said, while Zip is a good platform, there are also others to consider when deciding which is best for you.

Additionally, consumers can also choose from a range of other financing options, such as using one of the best credit cards for fair credit or, pursuing a personal loan to make a large purchase or consolidate debt. Each option has various benefits.

Here are some other buy now, pay later reviews to help you decide which is best for you.

• Klarna review
• Afterpay review
• PayPal Pay Later review
• Sezzle review
• Affirm review

Frequently Asked Questions

Source

Logo image source: zip.co/us

About Author

Deane Biermeier