According to Australian Fintech, the partnership is a response to advancing customer digital purchasing habits in Australia. Designed to enhance the accessibility of Microsoft products and empower Australian-based consumers to do more with their money, the deal will deliver the freedom to personalise the payment experience – offering interest-free payments over 12 months. Therefore, BNPL will first be made available to customers, with plans to roll out the payment solution to retailers and small businesses in 2021.
Furthermore, customers will be enabled to sign up to a single-use digital credit card bespoke to Microsoft purchases through the Zip App, a complementary feature that will help them to manage their finances when shopping with Microsoft, without going through their bank.
The initiative comes after the growth of the BNPL market in Australia, with over 35% of consumers now using payment plans. As part of its growth strategy, Microsoft plans to expand its BNPL offering into other markets, and invest in the capability for further technical integration to ensure the best customer experience, Australian Fintech reported.
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