Zip Buy Now, Pay Later: 2025 Review
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Our Take
3.5
Zip may deliver on ease and convenience, but its pay-in-four plan is more expensive than other BNPL providers.
Pros
- Available at many retailers.
- Includes free payment rescheduling.
- Pauses account after missed payment.
Cons
- Charges installment fee.
- Charges late fee.
- No monthly financing option.
Full Review
Zip — formerly known as Quadpay — offers “buy now, pay later” payment plans mostly through its mobile app. These plans let you split up your purchase at checkout, so you pay the total balance over a series of installments, instead of all at once.
Zip may charge multiple fees, including an automatic installment fee.
» COMPARE: The best buy now, pay later apps
Zip at a glance
Zip Pay in 4 | Zip Pay in 8 | |
Payment structure | Pay in four installments, due every two weeks. | Pay in eight installments, due every two weeks. |
Amount due at checkout | First installment (one-fourth of the purchase price). | First installment (one-eighth of the purchase price). |
Interest | No interest, but may charge an automatic installment fee. | No interest, but may charge an automatic installment fee. |
Availability | Available for online and in-store purchases of $35 to $2,500. | Undisclosed. |
How does Zip work?
Zip works by dividing the total cost of your purchase into smaller installments when you check out with Zip online, in stores or in the Zip mobile app. There may be multiple payment plans to choose from, including Zip Pay in 4 and Zip Pay in 8.
Zip doesn’t charge interest for Pay in 4 and Pay in 8, but it may charge an automatic installment fee that can vary widely based on the details of your purchase.
Other fees include a late fee up if you miss a payment and a payment rescheduling fee if you reschedule more than once per calendar month (more on these fees below).
Zip Pay in 4
Zip offers a classic pay-in-four, 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. You can also make payments manually or early.
Zip Pay in 8
In addition to its Pay in 4, Zip also offers the option to pay in eight installments, due every two weeks. The first installment is due at checkout.
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 be able to provide a valid phone number, Social Security number, mailing address and payment method.
Zip says it takes into account numerous factors when making an approval decision, though it doesn’t specify further.
Nerdy Tip
One of the best ways to get approved for a BNPL loan is to show a history of on-time payments with that provider. Consider using BNPL to make a small purchase first, then pay off your loan on time or early. This may help you get approved for a slightly larger purchase in the future.
Does Zip check credit?
Zip checks your credit with a soft credit pull, which doesn’t hurt your credit score. Though there’s no minimum requirement, Zip may consider your credit score as part of your application.
How to use 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 verify your mobile number and create an account by filling out a short application and adding 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.
Is Zip safe?
Zip is a safe and reputable provider of BNPL loans. Weigh the pros and cons below to decide whether Zip is the right fit for you.
Where Zip stands out
Free payment rescheduling: While some BNPL lenders won’t let you change your payment due date, Zip lets you reschedule one payment for free each calendar month. Additional payment changes made within the same month include a $2 fee, which is a lower rescheduling fee compared with other providers. This flexibility can help users avoid a fee altogether or pay a smaller fee overall — for example, a $2 rescheduling versus a $7 late fee.
Pauses account after missed payment: If you miss a payment, Zip automatically pauses your account and won't approve you for additional orders until your missed payment is complete. This can prevent you from incurring more debt. Once you catch up, Zip reactivates your account.
Where Zip falls short
Charges installment fee: Zip’s installment fee is essentially interest, since it’s added automatically to the total loan amount. According to Zip's terms of service, this fee ranges from $0 to $116 and is based on the payment plan and loan amount (for example, a large installment fee may only be applied to a particularly large purchase). The amount will be disclosed upfront, says Zip. None of the other major BNPL providers charge this type of fee, and it could make your purchase more expensive than if you hadn’t used BNPL.
Charges late fee: In addition to automatically pausing your account, Zip charges a late fee up to $7 if you miss your payment’s due date. Some BNPL providers don’t charge any fees, even when you fall behind on payments. Zip says it will cap this fee at three late fees per order.
No monthly financing: Many BNPL providers offer long-term plans to choose from at checkout, with some terms stretching as long as five years. Monthly plans can help finance a larger purchase with smaller installments and a longer repayment period. Monthly plans usually come with interest, though, and aren’t the right fit for everyone.
Zip reviews
At the time of writing this review, Zip holds an A+ rating from the Better Business Bureau (BBB) with over 200 complaints closed in the last year. Complaints against Zip mostly revolve around billing issues, including missing refunds and inaccurate charges.
On Trustpilot, Zip is rated 4.7 out of five stars. Users praise the wide availability of Zip, how easy it is to break up the cost of their purchase and being able to easily reschedule a payment when needed.
Zip’s mobile app pages are another good resource for reading Zip reviews. In the Apple app store, Zip is rated 4.9 out of five stars, with over 500,000 ratings. In the Google Play app store, Zip is rated 4.8 out of five stars, with over 60,000 reviews.
Expert take on Zip
“Zip’s product is easy to use, simple to understand and particularly flexible with payment rescheduling. But the automatic installment fee is what prevents it from being a top product on the market. No other major provider charges an automatic fee for using its pay-in-four product, and it cancels out what most shoppers are looking for with BNPL: a no-cost way to break up their purchase.”
— Jackie Veling, Lead Writer, BNPL
Frequently asked questions about Zip
You won’t build credit using Zip. If that’s your priority, consider more reliable ways to build credit, like applying for a secured credit card or getting credit for the bills you already pay, such as rent.
There are many reasons you may not be approved for Zip. Make sure you meet Zip’s basic eligibility requirements and consider trying again with a smaller purchase.
Zip may ask for your Social Security number to determine your eligibility.
Like all BNPL providers, Zip’s approval decisions are instantaneous, meaning you’ll know immediately whether you’ve been approved or denied.
Zip doesn’t conduct a hard credit check, so applying for Zip won’t hurt your credit. But if you fall behind on payments and your account ends up in collections, it could hurt your credit score.
Compare Zip with other BNPL lenders
Because Zip charges an installment fee, its pay-in-four is more expensive than pay-in-four plans offered by providers like Affirm, PayPal and Sezzle. These providers also offer monthly repayment options, though you may be charged interest.
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Alternatives to Zip
0% APR credit cards
If you have good or excellent credit (690 credit score or higher), you may consider a 0% APR credit card. These cards offer introductory periods of up to 21 months and charge no interest during that period. You may also receive a sign-up bonus or access to a rewards program.
Small personal loans
If you’re looking to fund a large, essential purchase, you could apply for a personal loan. Personal loans have fixed interest rates and longer repayment terms, and there are options for borrowers with fair or bad credit (689 credit score or lower).
You can pre-qualify for free with NerdWallet to see your loan options. Pre-qualifying doesn’t affect your credit score.
Find the Best Personal Loan
NerdWallet’s review process evaluates and rates “buy now, pay later” (BNPL) loan products from the top financial technology providers. We collect over 40 data points from each lender, verify the information with company representatives and compare the lender with others that seek the same customer or offer a similar BNPL product. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to BNPL providers that offer consumer-friendly features, including: soft credit checks to pre-qualify, zero interest and minimal fees, transparency of rates and terms, flexible payment options, accessible customer service and built-in borrower protections. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
This methodology applies to classic BNPL loans, which divide payment into four equal installments, typically due over six weeks. Some providers offer other loan products with longer terms, which is factored into the rating process. NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for buy now, pay later and our editorial guidelines.
