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Zip Co. Ltd. has partnered with GameStop to become the e-commerce retailer’s primary buy now, pay later provider for online and in-store customers in the United States.
The deal provides Zip with a ready-made customer base, as about 84% of Zip users in the U.S. shop on GameStop for gaming and accessories, the BNPL platform says. Gaming, which is a $100-billion industry, is one of Zip’s most popular categories, the company adds.
“This partnership expands Zip’s footprint in a key category with a highly engaged customer base and connects with millions of GameStop shoppers who are looking for payment flexibility,” says Joe Heck, Zip chief executive, U.S., by email.
BNPL is becoming table stakes for e-commerce retailers as the payment option is a “critical revenue driver” for these merchants, as well as a point of differentiation by providing consumers “a convenient, flexible payment option”, says Heck.
Zip has 6.3 million active customers and serves 81,900 merchants across the U.S., Australia, and New Zealand.
In related news, the Canada-based processor Nuvei Corp. has partnered with e-commerce marketplace Temu, which connects consumers with e-commerce merchants, manufacturers, and brands. The pairing aims to enable the acceptance of local, direct card acquiring and popular regional payment options globally.
Payment options to be supported by Nuvei include Konbini in Japan; Blik and P24 in Poland; Bancontact in Belgium; iDeal in the Netherlands; and MBWAY and Multibanco in Portugal.
Nuvei and Temu plan to expand the deal to include such markets as Colombia, Chile, and Canada later this year. The ability for Temu to offer popular local and regional payment options is expected to help the marketplace deepen customer relationships, Nuvei says.
In 2024, Temu began onboarding sellers with inventory in local warehouses rather than shipping from China. Initially, the company onboarded Chinese sellers with inventory in the U.S. Before that, Temu used a consignment model in the U.S., requiring sellers to agree on wholesale pricing, then shipping goods in bulk to Temu’s warehouses. Temu, which launched in the U.S. in 2022, was responsible for listing, marketing, fulfillment, customer service, pricing, and paying the seller.
