Zip US and InComm Payments have partnered to offer gift cards through the Zip app with instalment payments, extending buy now, pay later services into the gift card category.
Eligible shoppers can buy gift cards for retailers, entertainment brands, dining and travel providers directly in the app. After choosing a card and denomination, they can split the cost at checkout without leaving the platform.
The deal combines Zip's US consumer base and merchant network with InComm Payments' gift card distribution and payments infrastructure. Zip has 4.6 million active customers in the US and works with 29,000 merchant partners.
Federal Reserve data points to rising use of buy now, pay later products in the US. According to figures cited by the companies, 15% of consumers surveyed in 2024 had used buy now, pay later in the previous 12 months, up from 14% in 2023 and 10% in 2021.
The partnership adds a new product area for Zip as it looks to broaden how customers use short-term instalment payments. Gift cards have traditionally been bought in single transactions, whether for gifting or personal use, but the companies are betting some shoppers want to spread the cost.
InComm Payments is a major player in gift card distribution and payments infrastructure, with more than 525,000 retail and online points of distribution, 412 global patents and operations in more than 40 countries.
For Zip, the deal expands the use of its payment product beyond purchases made directly with merchants at the point of sale. It also brings gift cards into the company's app, where customers can browse and complete a transaction in one place.
Jinal Shah, Zip's Chief Marketing and Customer Officer, said customers had asked for more flexibility across day-to-day spending.
"Short-term installment payments have become a mainstream behavior, and our customers tell us they value this flexibility across all areas of their cashflow. Shoppers deserve more say over how they manage their money, and we're committed to expanding flexible options to more consumers," Shah said.
Shah said InComm Payments' brand network was also a key part of the agreement.
"We are excited to partner with an industry leader like InComm Payments. Their network puts the most in-demand brands in front of our customers, right when it matters," Shah said.
Gift card push
The addition of gift cards gives Zip another way to capture spending that may not happen through a direct merchant integration. It could also broaden the use of instalment plans for seasonal shopping and discretionary purchases across travel, dining and entertainment.
For InComm Payments, the partnership adds a new payment method to gift card purchases at a time when payment choice has become a bigger part of online checkout. The company described the arrangement as a way to simplify gift card purchases for shoppers.
Adam Brault, SVP of Financial Services at InComm Payments, said the focus was on reducing friction in the buying process.
"Our priority is to make shopping for gift cards quick and simple, whether consumers need a gift for a special occasion or simply want to treat themselves," Brault said.
"Partnering with Zip to bring more flexible payment options is an effective way to further take the stress out of the gift card shopping process," he added.
Zip, founded in Australia, operates in Australia, New Zealand, and the United States. Its US business has become a key market as it competes in the payments sector, where providers are seeking more ways to keep consumers within their own apps and ecosystems.
The latest tie-up shows how buy now, pay later providers are still looking for adjacent categories where instalment products can be applied as usage broadens in the US. Federal Reserve data cited by the companies showed that 15% of consumers surveyed in 2024 had used buy now, pay later in the prior 12 months.