Zip Pay works as an interest-free "buy now, pay later" service that allows customers to purchase goods immediately and pay off the cost over time through manageable repayments. Customers select Zip Pay at checkout, either online or in-store, and once approved—typically instantly—Zip pays the merchant the full amount minus a fee. The customer then repays Zip in installments, with a minimum repayment usually set (e.g., $10 per week for Zip Pay), and no interest is charged on purchases. Zip Pay offers credit limits typically between $350 and $1000, sometimes up to $2000 for eligible users, and repayment is usually due monthly by direct debit. There are no upfront payments required, and users receive monthly statements breaking down their spending, fees, and payments. However, there may be fees such as a monthly account fee ($7.95 if a balance is owed), and late payment fees. The service integrates with businesses’ payment systems seamlessly and aims to protect customer data securely during transactions. Zip also offers Zip Money, a related product with higher credit limits and different fee and interest conditions, but Zip Pay itself remains interest-free. Customers apply online with identity verification and credit checks. Zip makes money through fees charged to retailers per transaction and possible fees from customers for some services or missed payments. In summary, Zip Pay is a flexible payment option to buy goods now and pay later in interest-free installments, helping spread the cost while ensuring merchants get paid upfront.