As Australians start embracing cashless methods of payment, we are beginning to see a myriad of new payment methods appear.
While debit cards and credit cards are preferred by many, digital wallets and payment methods are rising in popularity.
One such method of payment is zipPay. This is a payment method that provides 100 per cent interest-free credit to use on purchases in eligible stores and websites, with the added bonus of it being accessible on your phone, thereby eliminating the need to carry an additional card in your wallet.
It is owned by ASX-listed company zipMoney Limited, and all operations are based in Sydney, Australia.
How does zipPay work?
There is a quick online sign-up process to register with zipPay. Once this has been completed, the applicant will find out if they are eligible for an account almost immediately. Once approved, the account can be used for online purchases by selecting zipPay as the payment method. zipPay can be used for in-store purchases at any store at which zipPay is accepted – all you do is sign into your account and select zipPay as the payment method during checkout. zipPay then pays the retailer on your behalf and adds the cost to your account.
What are the eligibility criteria for zipPay?
As with most lenders, zipPay accounts are subject to eligibility criteria, including:
- Proof of identity
- Income stability
- Satisfactory credit score
How do I make repayments with zipPay?
zipPay allows you to set up a weekly, fortnightly or monthly repayment schedule. These repayments will then be taken automatically from your nominated account. You will also be able to make voluntary repayments on top of scheduled payments.
What fees and charges come with zipPay?
zipPay sends account holders a statement on the first of each month, listing any purchases made in the previous month. Account holders are given the rest of the month to pay back the owed amount without any fees charged.
All accounts need to make a minimum repayment of $40 a month. If this repayment is not made, users are charged a fee of $5 per month until the amount owing is paid out in full.
How do I close my zipPay account?
Users may close their zipPay account once the balance has reached $0. However, the account can be kept open with no fees if the users feels it may be used for future purchases.
What are the pros and cons of zipPay?
zipPay has a range of benefits, including:
- It’s convenient, as it eliminates the need for a card
- The sign-up process is quick and efficient
- There are several credit limits, allowing you to choose one that suits your needs
- It’s relatively easy to avoid fees if you’re diligent with repayments
That being said, it’s important to remember that zipPay is a lender – if you accumulate a lot of debt that you cannot repay, you will be subject to fees and charges. Also, the ease of payment is a double-edged sword, because it means you might make unwise purchases.
As with any financial decision, weighing up the pros and cons and suitability for financial situation is advised.