InComm, Zip Partnership Brings Buy Now, Pay Later to Gift Cards

Why It Matters

Adding BNPL to gift cards expands flexible financing into a high‑volume retail segment, unlocking new revenue streams for both Zip and InComm while meeting growing consumer demand for installment payments.

Key Takeaways

• Zip adds BNPL to gift cards via InComm integration
• Eligible US shoppers can split gift card purchases in the Zip app
• BNPL usage in US reached 15% of consumers in 2024
• InComm processes over 1 billion cards, $65 billion annually
• Zip serves 6 million customers, 85k merchants, 93 M transactions yearly

Pulse Analysis

The Zip‑InComm partnership marks a strategic extension of Buy Now, Pay Later services into the gift‑card ecosystem, a segment traditionally dominated by cash and credit‑card purchases. By embedding installment options directly into the Zip app, the collaboration removes friction for consumers who want to spread the cost of high‑value gift cards for retailers, entertainment venues, and travel providers. This seamless checkout experience leverages Zip’s existing user base of 6 million U.S. customers and InComm’s extensive network of over 525,000 retail distribution points, creating a potent distribution channel for BNPL providers.

From a market perspective, the timing aligns with accelerating BNPL adoption—U.S. Federal Reserve data shows 15% of consumers used BNPL in the past year, up from 10% in 2021. As shoppers increasingly view short‑term installments as a budgeting tool rather than a credit risk, fintech firms are racing to embed financing into everyday purchase categories. Gift cards represent a $65 billion annual transaction volume for InComm, offering a sizable, untapped revenue pool for installment financing. The partnership also positions Zip against rivals like Afterpay and Klarna, which have focused on e‑commerce and point‑of‑sale credit but have yet to dominate the prepaid card space.

Looking ahead, the collaboration could spur further innovation, such as dynamic pricing of installment fees or integration with loyalty programs. With Zip’s recent launch of ZMobile in Australia, the company demonstrates a broader ambition to become a multi‑service financial platform. If the BNPL‑gift‑card model proves profitable, we may see similar alliances across other prepaid products, reinforcing the shift toward flexible, consumer‑controlled payment experiences across the fintech landscape.