Zip, like Afterpay, is an Australian-founded BNPL provider, and it offers both a short-term Zip Pay product and a larger Zip Money financing option.
Zip Pay
Zip Pay is generally aimed at smaller, everyday purchases and has historically relied on a lighter approval process than Zip Money. As with other short-term BNPL products, the biggest credit risk comes from missed payments rather than the initial approval.
Zip Money
Zip Money is a larger financing product more comparable to a personal line of credit, and is more likely to involve a formal credit check and ongoing reporting under Australia’s comprehensive credit reporting system.
- Read the specific product terms shown at signup — Zip Pay and Zip Money have different approval processes and different implications for your credit file
- Missed payments on either product can be referred to collections, which can affect your credit score
- Australian regulatory scrutiny of BNPL has increased in recent years, and requirements may continue to evolve
Because Zip Pay and Zip Money are structured differently, don’t assume the rules for one automatically apply to the other.
Compare with Afterpay in Australia, or see how Zip works in the US and the UK.