In October 2021, the global buy now, pay later (BNPL) provider Zip, formerly known as Quadpay, entered into a strategic partnership with Blackhawk Network, the global branded payments provider. This strategic partnership comes on the back of increasing demand from consumers looking for flexible payment options for completing their purchases.
According to PayNXT360’s Q2 2021 Global Gift Cards Survey, more than 80% of the gift-buyers showed interest in gift cards instead of a physical gift during the upcoming holiday season. Consequently, it can be expected that an increasing number of users to use the BNPL payment solution to purchase gift cards globally.
The strategic partnership is expected to bring the Blackhawk Network to more than five million Zip users, thereby allowing them to purchase gift cards within the Zip BNPL platform. The collaboration between Zip and Blackhawk network also means that consumers can buy gift cards at GiftCardMall.com, GiftCards.com, and on the Blackhawk platform as well.
Since Blackhawk Network has partnered with more than 500 platforms globally, consumers will have more BNPL gift card options across different marketplaces. This strategic partnership is expected to allow consumers more options to purchase gift cards in installments.
With the deferred payment industry expected to record strong growth in the next few quarters, PayNXT360 projects these innovations in the BNPL space will be critical to continue providing innovative options for both consumers and merchants. Under the collaboration, both Zip and Blackhawk Network are also expected to bring more merchants on board to offer the BNPL payment method at the point of sale, allowing consumers to complete purchases using Zip through an in-store QR code.
Notably, the payment solution of Blackhawk Network, SpendIt, will offer support for the deferred payment service of Zip, as will several mobile and cryptocurrency wallets. With the global gift card market expected to reach more than US$4 trillion by 2027 and the BNPL industry projected to see strong growth, the partnership will enable merchants to offer flexible payment solutions to more consumers over the next four to eight quarters.