Zip Buy Now, Pay Later: 2023 Review

Zip — formerly known as Quadpay — offers “buy now, pay later” payment plans mostly through its mobile app. You can use Zip to shop at many large retailers, including Best Buy, Amazon and Walmart.

Zip lets you split your purchase into smaller, equal installments, so you don’t have to pay the full price upfront. It’s similar to other BNPL providers like Sezzle and Affirm.

Though NerdWallet recommends paying for purchases outright whenever possible, BNPL is sometimes a good fit for borrowers who need to cover a necessary expense and can afford the installments.

Zip at a glance

How does Zip work?

Zip is available through its mobile app anywhere Visa is accepted, making it a viable payment option at most retailers.

Once you’re ready to check out, Zip displays a pay-in-four payment plan, which splits the total price of your order into four equal installments that are due every two weeks, with the first payment due at checkout.

For example, if your total is $100, you’ll pay $25 at checkout. The three remaining $25 payments will be due every two weeks until you’ve paid the full $100. These payments are automatically billed to the debit or credit card you used to make the original payment, and Zip sends a reminder before billing you.

Zip charges a $1 convenience fee for each payment, meaning every purchase with Zip will cost an extra $4. This is unusual among BNPL providers, which typically don’t charge fees unless you miss a payment. Zip’s convenience fee is nonrefundable if you make a return.

Zip also charges a late fee, which can be $5, $7 or $10, depending on your state.

Should you use Zip?

Zip is a reputable provider of BNPL loans, but it may be more expensive than other BNPL options. Also, BNPL plans tend to be risky in general, especially if you struggle with overspending. Since you only pay a quarter of the price upfront, it feels like you’re taking on less debt than you are. Make sure to read Zip’s terms carefully before agreeing to the loan.

Zip may be a good option if you:

Need to cover an emergency expense: Since Zip payment plans are widely available, you could use one to cover a necessary expense you can’t afford to pay all at once. Even if the store doesn’t advertise a BNPL plan, there’s a good chance it’ll accept Zip if you shop through the Zip mobile app.

Have bad credit or no credit: Zip doesn’t do a hard credit check, so it's an option if you need access to financing and have no other way to get it. Zip is a better choice compared with much higher-interest loans like payday loans.

Zip is not a good idea if you:

Want a zero-cost BNPL loan: There are other BNPL providers, like Afterpay and Klarna, that offer pay-in-four plans without charging a convenience fee. That means they’re more affordable and likely a better choice than Zip when possible.

Want to build credit: Some BNPL providers help borrowers build credit by reporting payments to the credit bureaus. Zip does not report payments, and borrowers who are notably past due on their account may be sent to collections, which can hurt their credit. According to the company, this is an automated process, and Zip customer support agents can’t tell borrowers when it will happen.

Struggle to keep track of your money: Unlike other BNPL providers, Zip doesn’t let you turn off automatic payments, which means your card will be charged on the due date whether you have the funds or not. If you miss a payment, Zip charges a late fee, and your bank or credit card issuer may charge a penalty fee. Zip lets you reschedule a payment at least 24 hours in advance, which may help you avoid these charges.

How to get approved for Zip

To be eligible for Zip, you’ll need to be at least 18 years old, live in the U.S. and have a valid phone number and mailing address. Some applicants may be asked to provide their Social Security numbers.

Approval decisions are instantaneous, but Zip doesn’t disclose what factors it uses to decide.

Does Zip check credit?

Zip may perform a soft credit check, which does not hurt your credit score. Zip says it does not rely solely on credit scores and doesn’t state a minimum credit score requirement, so if you have bad credit or no credit, there’s a good chance you can still use Zip.

How does Zip compare?

» COMPARE: 6 popular buy now, pay later apps

How to get Zip

Download the Zip app

The easiest way to use Zip is to download its mobile app. Once you’ve downloaded the app, you’ll create an account and add a payment method. If approved, you’ll be shown your spending limit with Zip.

Shop with Zip online and in stores

You may also see a Zip button on some retailers’ online checkout screens, meaning you can opt into Zip without leaving the retailer’s website.

If you want to shop in person with Zip, you’ll need to find the “in-store” tab on Zip’s mobile app, enter a total purchase price and receive access to a virtual card you can use to pay at the counter.

Alternatives to Zip