One of the country's buy now, pay later providers has announced it will withdraw from the New Zealand market.
The Buy Now, Pay Later (BNPL) company Zip was founded in Australia in 2013, as a "digital financial services company helping millions of customers in the United States, Australia and New Zealand to manage their money with flexible credit and cashflow solutions".
It provided short-term payment plans that retailers offered to shoppers at the point of purchase.
Zip Co NZ Finance Limited said in an email to customers that it would be ceasing to provide the Zip Pay in 4 product, which meant consumers both online and instore could pay back the amount in four interest-free payments over six weeks.
"We are writing to let you know that on August 16, 2026, your Spend Limit under your Pay in 4 Account will reduce to $0.00 and you will no longer be able to make new purchases," it said.
The company said consumers with outstanding balances would still be required to make all payments under any Payment Schedules on the Payment Dates specified.
However, new purchases would not be made under the Zip Pay in 4 Account.
Zip New Zealand said "following a strategic review of its business portfolio, it has decided to commence an orderly wind down of its New Zealand operations".
The decision reflected Zip's focus on investing in its Australian and US businesses, which continued to demonstrate strong momentum and profitable growth.
A spokesperson said the company "recognised the contribution of its New Zealand team and is committed to supporting its employees, customers, merchants and business partners throughout the transition".
The financial impact of the wind down was expected to be "immaterial to the Zip Group".
The most common BNPL model is the "pay-in-four" — rather than paying the full amount up front, the shopper pays 25% immediately and the remaining 75% over three equal instalments, typically debited automatically every two weeks.
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