Afterpay rival, Zip, has inked a deal with Wesfarmers owned discount department store, Kmart, to offer customers access to its interest-free buy-now-pay-later service.
Zip is expected to go live in Kmart’s online network by the end of the month – further intensifying competition against Big W, who use rival platform, Afterpay.
Target Australia also utilises Afterpay, with both retailers offering options to online and in-store customers.
The news comes as Target Australia and Big W prepare for several store closures, with Kmart remaining relatively stable.
Disclosed in an ASX statement today, Kmart Director of Retail Australia & New Zealand, John Gualtieri, asserts the deal will provide customers “more flexibility and convenience when shopping with us online.”
It follows Zip’s partnership with hardware giant, Bunnings, and comes as more Aussie retailers ramp up their interest free finance offers.
The news has sent shares in Zip soaring over 5% to $3.87.
Despite several consumer warnings from financial advisers, demand for buy-now-pay-later platforms such as Afterpay and Zip has continued to grow in Australia.
Advisers asserts such platforms can heavily increase household debt if not wisely managed, coupled with soaring online shopping and discounting.
The news follows Zip’s strategic vision to partner with Australia’s largest retailers, with its e-commerce base including the likes of Kogan.com
“Whether we’re creating on-trend products at everyday low-prices, extending opening hours to make shopping more convenient for customers or opening stores in new communities, we want to make shopping more accessible to more people,” asserts Mr Gualtieri
“We believe Zip will be a great fit for Kmart, providing their customers with a better way to pay for their everyday products and purchases,” claims Zip CEO and MD, Larry Diamond.