Microsoft Store will offer instalment payment plans to customers for the first time as it partners with Buy Now Pay Later (BNPL) provider, Zip Co, with Australia chosen as the pilot market.
Designed to enhance the accessibility of Microsoft products, the deal will enable customers to personalise their payment experience, offering interest-free payments over 12 months. BNPL will first be made available to customers, with plans to roll out the payment solution to retailers and small businesses later in 2021.
Customers will be able to sign up to a single-use digital credit card bespoke to Microsoft purchases through the Zip app; a complementary feature to help customers manage their finances when shopping with Microsoft.
Microsoft Australia and New Zealand digital stores lead, Michelle Casey said, “Our latest collaboration with Zip is a vital extension of our commitment to provide even greater access to Australians, particularly the student market so that they can shop with confidence without compromising innovation and performance.
“We are excited to venture into the BNPL ecosystem with an innovative fintech partner who shares the same vision of making technology a more available resource. This is a necessary step following a sharp increase in customer demand towards tailored payment options in the Australian market, more than any global counterpart.”
Zip director for enterprise sales, Colin Baines said, “Zip is excited to be partnering with Microsoft, one of the world’s great brands. Every day we are seeing that people are changing the way they pay, especially online. Zip believes there is great potential to grow our services in the Australian technology sector, and we are proud to be doing this with Microsoft.”
More than one-third (35%) of Australian consumers now use payment plans. Globally, Zip has 6.4 million customers, and more than 45,000 merchants.