BREAKING NEWS

Amazon adds Zip Co's buy now, pay later platform to its Australia website

Amazon adds Zip Co's buy now, pay later platform to its Australia website
FILE PHOTO: The logo of Amazon is seen at the company logistics centre in Boves, France, November 5, 2019. REUTERS/Pascal Rossignol -
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PASCAL ROSSIGNOL(Reuters)
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(Reuters) – Australia’s Zip Co Ltd <Z1P.AX> said on Thursday that Amazon Inc’s <AMZN.O> local unit will offer its buy now, pay later platform as a payment option, a sign of its growing popularity despite heightened regulatory scrutiny.

Zip’s payment platform will likely go live on Amazon Australia’s website on Thursday, the company said. As part of the deal, Zip will issue warrants to buy as much as 14.6 million of its shares to an affiliate of Amazon.

The move highlights the growing popularity of installment-based payment options, especially with Millennial and Gen Z shoppers due to its accessibility in comparison with traditional credit routes.

However, the success of the buy now, pay later (BNPL) sector has also brought greater regulatory scrutiny.

Financial crime watchdog AUSTRAC earlier this year demanded an external auditor report of Afterpay Touch Group <APT.AX>, which is seen as a bellwether of the sector, for suspected non-compliance with money-laundering and counter-terrorism financing laws.

(Reporting by Nikhil Kurian Nainan in Bengaluru; editing by Jane Wardell)

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