Zip, a leading global buy now, pay later (BNPL) payment provider, and Primer, a payment orchestration platform have announced a partnership to accelerate BNPL growth in the U.S.
The partnership will see Primer provide Zip with access to its payments infrastructure, including card acquirers and processors, fraud and communication tools, and fallback features. This will help Zip to reduce its operational costs and scale its BNPL offering in the U.S.
In addition, Primer will also add Zip as a payment option, allowing merchants to offer BNPL to their customers. This will make it easier for consumers to use BNPL at a wider range of stores and online retailers.
“With an $11 trillion total addressable market in the U.S., BNPL services account for a mere 2% of all payments,” said Larry Diamond, Co-founder and U.S. CEO of Zip. “Our partnership with Primer not only accelerates Zip’s growth trajectory but also positions us to seize this colossal market opportunity in a scalable and sustainable manner.”
“We're thrilled to be the infrastructure of choice for Zip,” said Gabriel Le Roux, Co-founder of Primer. “While delivering localized payments expertise, optimization features and insights, we’re supporting leading companies like Zip to optimize payment costs and capture untapped revenue opportunities.”
Benefits of the Partnership
The partnership between Zip and Primer will provide a number of benefits for both companies, including:
- Increased access to merchants - Primer’s payments infrastructure will give Zip access to a wider range of merchants, which will help to grow its BNPL business.
- Reduced operational costs - Primer’s fraud and communication tools will help Zip to reduce its operational costs, freeing up resources to focus on growth.
- Increased visibility - Primer’s insights will give Zip greater visibility into its payments data, which will help it to make better decisions about its business.
- Enhanced customer experience - By offering Zip as a payment option, Primer will make it easier for consumers to use BNPL at a wider range of stores and online retailers.
The partnership between Zip and Primer is a significant development for the Buy Now Pay Later market in the U.S. It is expected to help to drive adoption of BNPL among consumers and merchants, and to contribute to the growth of the BNPL market in the years to come.
