Zip buy now, pay later loans: 2024 review

Zip is best for a no-frills buy now, pay later plan

If you want a straightforward four-payment buy now, pay later plan to spread out the purchase cost, Zip is a good fit. You won’t be tempted to switch to a personal loan product because Zip doesn’t offer one. 

The fees are easy to understand, and the approval process seems to work best when using Zip’s well-regarded app. The company’s website provides some great tips for using the Zip app in different ways, with excellent details about using the plans for travel expenses.

Zip buy now, pay later purposes

A Zip plan allows you to purchase day-to-day expenses like gas and groceries, making it a good (and much cheaper) alternative to payday loans. Payday loans’ annual percentage rates (APRs) can exceed 600 percent. Even in a scenario where you were charged Zip’s highest fee ($7.50) on the smallest possible purchase ($35), your APR would not exceed 186.22 percent. A higher funded amount would translate to a lower APR. 

You can book travel for everything from trains and plans and add the cost of your hotel to your Zip card to manage your exploring budget. Zip even partners with popular third-party booking sites like Expedia, Priceline and Hotels.com if you find your best deals there.

Where Zip stands out

• A simple, easy-to-use payment plan: Once you confirm that the merchant you’re buying from is Zip-approved, you’ll pay 25 percent upfront as your first payment, with the remainder due over the next six weeks. 
• Excellent app rating: Zip’s smartphone app has an impressive 4.9 rating on the App Store with over 530,000 user ratings posted. 
• Available at most merchants that accept Visa: Zip partner with most major retailers, including Amazon, Walmart, Macy’s and Home Depot to offer an easy “Pay with Zip” process. The payments are displayed for you to review before you finalize your payment. The first payment is due when you check out. 
• Payment date flexibility: Once per purchase, you may change your payment due date by up to seven days. You must request this change until 24 hours before an installment is due. You may do this once per month for free or incur a $2 fee if you request additional changes within a given month.

Where Zip falls short

• Only one repayment option is available: If you need term options beyond Zip’s six-week, four-payment plan, you’ll need to find a different buy now, pay later app.  
• Fees often apply: You will pay a financing fee of up to $7.50 per purchase, divided among the four payments. You’ll also pay a late fee of $5 to $10 if you miss a scheduled payment. 
• The virtual card is only good for 14 days: When you are approved for a purchase through Zip, the app creates and loads a temporary, virtual Visa card that expires in 14 days. This can be confusing if you make a purchase that won’t be charged until later (like a hotel or car rental). In these cases, ask the retailer when your Zip card will be charged to avoid last-minute problems.  

Zip customer experience

Customer support

You can message a Zip representative seven days a week from 7 a.m. to 11 p.m. ET. If you need phone support, Zip offers it daily from 9 a.m. to 9 p.m. ET. You can submit an additional email form if you have a question outside of normal contact support hours. 

Digital experience

Zip offers a digital experience online or through its app. Approval is usually instant, and the entire transaction can be completed on your smartphone. However, it’s important to time the virtual card so that your purchase is charged within 14 days. Otherwise, the card expires, and your purchase won’t go through. 

What people are saying about Zip

The majority of users’ Zip reviews, both on the app stores and on third-party review site Trustpilot, are 5-star and positive. As of July, Zip has a 4.7-star rating on Trustpilot after nearly 19,000 reviews. Users describe the ease of using the Zip plan to spread payments out without worrying about credit approval. 

“I did some early back-to-school shopping for my boys via Mercari. My total purchase was more than I initially wanted to pay. Thankfully, Zip was an option. It was very easy to use and the payment plan was easy to understand. It's great that Zip emails the plan to you so you don't miss a payment.”

— trustpilot user

Negative ratings on the App Store are mostly related to returns. Customers often needed to work directly with customer service to resolve their issues. Multiple customers writing on Trustpilot were frustrated with low starting spending limits and difficulties in getting their spending limits increased despite making on-time payments. 

Zip representatives consistently respond to negative reviews on the Trustpilot page.

Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate. Please see the issuer’s website for updated terms and conditions.

How this lender compares

Do you qualify for a Zip buy now, pay later plan?

To qualify for a Zip payment plan, you’ll need to:

• Be a U.S. resident
• Prove you’re at least 18 years old
• Verify your mobile phone number
• Have a debit card you use for purchases
• Document a mailing address that’s not a mailing service (like a PO box)
• Choose a Zip-approved merchant to buy from

How Bankrate rates Zip