What Is Zip? (Formerly QuadPay) Everything You Should Know

Zip is an online platform that offers flexible financing for shoppers. In a nutshell, the buy now, pay later (BNPL). In turn, you don’t have to put things on layaway.

Launched in 2017 and headquartered in New York City, to date Zip is in 12 countries, has served more than 7.3 million customers, and works with more than 51,000 merchants globally.

What is Quadpay? Well, it’s actually now Zip. In the summer of 2020, the global payment company Zip acquired Quadpay. Hence the name change from Quadpay to Zip.

Zip isn’t a loan or a credit card so you don’t have to pay interest. And it offers options to make purchases that work best with your budget. So if your direct deposit is a few days away, you can buy that item. Zip’s standard schedule works like so: you make four payments over a six-week period, with the first payment due at checkout. The remaining three payments are due every other week. Payments are made automatically through the payment method linked to your Zip account.  

So how does Zip work exactly? It’s pretty simple. First, you download the app to your phone or the Chrome extension to your computer. The app is available in the App Store and Google Play.

There are three ways to use Zip:

• Through the app (shopping on your phone) 
• In stores (you’ll need the app on your phone)
• Through the Chrome extension (shopping on your computer)
  

You’ll need to create an account and set up your username, password.

Then, you look for a retailer and do your online shopping. Once you’ve loaded up your shopping cart, you confirm the purchase amount and complete the payment. Your payment is divvied up into four payments over six weeks, and that’s it!

If you want to use Zip in-store, you’ll need to add your Zip card to your digital wallet. Then, click on the “In-Store” tab on the app. Next, you punch in your total purchase amount and review your payment plan. Then, you choose your Zip card as your mode of payment (which is added and can be stored on your digital wallet). Last, just tap to pay.

So how does Zip make money? While you won’t be paying interest fees, like with a credit card or loan, you do pay a fee. Currently, Zip charges $1 for each payment, which adds up to $4 per purchase. If you’re late, you might get hit with an initial late fee that’s either $5, $7, or $10. The amount depends on the state you live in. Thankfully, Zip offers flexibility in its payments.