Zip is an Australia-based company offering customers the ability to buy a product or service at full-price on the spot, without paying the full price right away – instead, Zip pays the full price, and the end customer pays Zip the rest later on.
Companies offering these services are not new, with counterparts like Swedish firm Klarna and others providing the same service in Europe – but they may very well be the first to offer this service for cryptocurrencies, instead of clothing and the like.
Youth Targeted For “Buy now, pay later”
The company stated that they are looking at the possibility of expanding their offers to cryptocurrency as a way to liaise with their predominantly young customer base.
If the plan comes to fruition, the service would probably first be offered in the United States via QuadPay, the US branch of Zip. QuadPay seems to be bringing in a significant percentage of Zip’s revenue – more precisely, “674,000 customers in Zip’s fiscal third quarter for a total of 3.8 million customers”, according to the Wall Street Journal.
“We’re very keen [to] move on this feature and the U.S., in particular, might be further advanced than Australia. It’s probably going to be slightly different for each of the products and services we roll out.”
According to Peter Gray – the co-founder of Zip, Co – the offer would most likely first be tested on the US market due to a more advanced interest in trading. Traditional stock trading was also briefly touched upon – although Zip is allegedly less keen on offering more traditional banking services like stock trading, compared to crypto trading.
The ability to buy stocks or crypto even if slightly out of pocket might be a dangerous game for inexperienced traders who might take on too much risk than they are comfortable with. With the current instability of crypto markets, this could pay off – but it could easily go wrong if the market turns, leaving people with more debt.
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