Zip (Previously Quadpay) Review 2024 (2024)

Customers can use Zip’s mobile app at checkout to split purchases into four equal payments over six weeks.

More than 80,000 merchants currently allow buyers to pay for their purchases using Zip—including both online and in-person retailers. You can access a full list of participating retailers in the app’s store directory. A few of the major retailers that accept Zip include Target, Walmart, Home Depot and Sephora.

Zip doesn’t charge interest; however, customers will pay fees in addition to the cost of the purchases they finance using the mobile payment platform.

Buy now, pay later apps typically aren’t the best choice for purchases if you can avoid using them. Zip may charge no interest and minimal fees (for those who don’t fall behind on payments), but the app could still lead to increased debt and future financial problems.

A credit card may be the better option for purchases, provided you can pay off the statement balance each month and avoid interest charges. In the meantime, the grace period a credit card offers can give you a sort of short-term, interest-free loan, but only if you consistently pay the balance in full.

However, if you’re in a financial bind and need an option to spread out an emergency expense over six weeks, Zip could be worth considering. Especially if you have bad credit that could keep you from qualifying for other types of financing, Zip could be a good option. The service is certainly a better approach than expensive payday loans and other predatory financial products.

If you have good credit, you may be able to qualify for better financing options than a buy now, pay later program. Personal loans for good credit and 0% APR credit card offers are two financing solutions worth considering if unexpected expenses arise and you don’t have an emergency fund to utilize. It’s also worth noting that Zip won’t allow you to build credit like a traditional financing option may offer.

Zip likely isn’t a good choice for people who struggle with overspending either. And depending on your situation, updating your budget and building an emergency fund could potentially help you avoid needing a service like Zip in the first place.

Zip also may not work well for larger expenses. The company provides you with an estimated spending power number, but it will review each transaction on a separate basis for approval.

Costs

As mentioned, Zip doesn’t charge customers traditional interest fees. But there are costs associated with using the payment platform. You will have to pay a $1 fee along with each of your four payments to Zip for a total fee of $4.

If Zip is unable to draft payment on its due date, a $7 late fee will also be posted to your account. And if you fall far enough behind on your payments to Zip, the company may turn you over to a collection agency.

However, Zip may sometimes honor requests to adjust your payment date. Be sure to reach out to the company at least 24 hours prior to your scheduled payment if you need to see if a payment delay is possible.

Eligibility

Zip is not available for people who:

• Don’t have a credit card or debit card
• Are under 18 years old
• Live outside of the U.S.
• Don’t have a valid mobile phone number

You can use Zip for buy now, pay later financing with any retailer that accepts Visa. The service is relatively easy to use and works as follows:

1. Download the Zip app on your mobile device. You can find the app in Apple’s App Store or Google Play. You can also visit the company’s website and enter your phone number to receive a link via text where you can start the download process.
2. Select Zip as your preferred payment method when checking out with an online retailer. For in-person purchases, the app will prompt you to enter the estimated purchase price. Then it will provide you with a virtual card number to use at checkout. (Note: The app only works for purchases of at least $35.)
3. Choose the credit or debit card you want to use to make the initial payment. The first payment amount will be equal to 25% of the purchase price plus Zip’s initial $1 fee.
4. Repay your remaining balance. Zip will automatically draft your remaining three payments (plus a $1 fee per payment) on the same credit or debit card over the next six weeks. Payments take place every two weeks. Before your payment drafts, Zip will also send you a courtesy reminder.

It’s worth pointing out that if you return a purchase to a retailer, you may not receive a refund of the $1 loan origination fees you paid to Zip.

It’s always wise to consider a company’s reputation before signing up for a financial service. Here’s a look at what past and present customers have to say about their Zip experiences.

• Trustpilot: Zip earns 4.6 out of 5 stars with Trustpilot. The company has a rating of “Excellent” based on over 8,000 customer reviews. Eighty-three percent of the company’s customer reviews rank the company as excellent, while only 8% rank Zip as bad.
• Better Business Bureau (BBB): Zip earns 4.02 out of 5 stars with the BBB. The company has a rating of B- and is not an accredited business with the BBB. (Note: Companies must pay to be accredited with the BBB.)
• Apple App Store: The company has a 4.9 rating on the Apple App Store, based on over 335,000 user reviews.
• Google Play: Zip has a 4.4 rating in the Google Play store based on over 30,000 votes.

If you use Zip and you become a fan of the service, the company may reward you for referring others. The Refer a Friend program offers eligible existing customers $10 off an order for each new referral who signs up and makes a purchase. There is a limit of five referral credits available through the program.

Zip isn’t your only option for a buy now, pay later service. Consider these three alternatives.

Klarna

Similar to Zip, Klarna lets you repay your purchase over a number of months. However, Klarna offers more payment options than Zip. For instance, you can choose Klarna financing if you want repayment terms of up to 36 months, but this option might come with interest charges up to 24.99%.

The amount you can finance with Klarna depends on your finances. Klarna might be a better choice than Zip if you want more payment options. However, unlike Zip, Klarna charges late fees.

Afterpay

Like Zip, Afterpay splits up your purchase into four payments over a six-week period. Instead of setting a specific spending limit, Afterpay extends credit to consumers based on their unique finances. It also charges late fees, which could add up to 25% of the purchase price of the item.

You can use Afterpay online or in-person at stores.

Splitit

Splitit is a unique buy now, pay later service. Through Splitit, you use a credit card that you already have to split purchases into multiple payments. Your merchant will then charge your credit card a portion of the total payment until it’s paid off.

Terms vary based on the price of the item, but you may be able to pay it off anywhere from three months to two years. You won’t have to pay interest or fees to use Splitit, but your card issuer may charge interest if you fall behind on payments.