“Can Zip become the default payment and short-term credit layer for financially underserved consumers and SMB merchants globally, while defending against both traditional credit card incumbents and newer BNPL competitors?”
Zip started as a consumer BNPL credit provider in Australia, competing directly with Afterpay by targeting customers underserved by credit cards. It expanded internationally — most notably into the US — positioning itself as inclusive BNPL for 'everyday Americans' overlooked by traditional lenders and other BNPLs. Over time, Zip layered in a Visa card product, virtual single-use cards, and business lending (via Prospa partnership in Australia; WebBank partnership in the US), evolving from a pure checkout-financing tool toward a broader consumer credit and payments wallet. The company has also deepened merchant integrations via Stripe, Adyen, and Xero, embedding BNPL across both online and in-person commerce.
Zip discloses WebBank as its banking provider, according to the Embedded Finance Index 2026.
Zip does not disclose a bank charter of its own; its banking services are provided through WebBank.
Zip processes payments through Stripe, Adyen and Zip Payments (self-operated).
Zip's lending and capital products are provided by WebBank.
Zip's embedded insurance is provided by Covergenius.
Zip integrates with Xero.
The Embedded Finance Index 2026 maps 6 layers in Zip's stack: Payments / PSP (Stripe, Adyen and Zip Payments (self-operated)); Banking / BaaS (WebBank); Lending (WebBank, Zip Pay (consumer BNPL), Zip Plus (consumer BNPL), Zip Money (revolving credit) and 9 others); Insurance (Covergenius); Sponsor bank (WebBank); Accounting (Xero).
Zip is founded in 2013 and headquartered in Sydney, Australia.
Get a read on where your own stack stands against Zip and the rest of its category — what they built versus bought, which providers they use, and where the gaps in your own strategy and competitive set actually are.