Buy-now-pay-later provider Zip to exit New Zealand market
The buy-now-pay-later company Zip has announced it is closing its operations in New Zealand. The company, which is known for its 'Zip Pay in 4' service, will stop offering its payment products to local customers in the coming weeks.
Starting in mid-August, all active Zip accounts in New Zealand will have their spending limits reduced to zero. This means that customers will no longer be able to make new purchases using the service. The company has informed its users that they must continue to pay off any remaining balances on their accounts until they are fully settled.
This decision marks a significant change in the local retail finance sector. Zip has been a popular choice for shoppers looking to split payments into smaller installments. However, the company has decided to focus its resources on other international markets instead of continuing its New Zealand service.
Financial experts suggest that the buy-now-pay-later industry is facing increased pressure due to stricter regulations and changing economic conditions. As the cost of living rises, many companies are re-evaluating their business models to ensure long-term stability.
Customers who currently use Zip are encouraged to check their emails for specific instructions regarding their accounts. While new purchases are no longer possible, the company remains responsible for managing existing debt until all payments are completed.