Zip US and InComm Payments Bring Flexible Payments to Gift Cards, Giving Shoppers a New Way to Pay

WHY THIS MATTERS

The partnership between Zip (ASX: ZIP) and InComm Payments, announced on May 19, 2026, represents a major tactical expansion of Buy Now, Pay Later (BNPL) into a notoriously rigid asset class: the prepaid and gift card category. Valued at over $160 billion in the U.S. alone, gift cards have traditionally resisted deferred checkout models due to heightened fraud dynamics and immediate liquidity flight risks.

By integrating InComm’s massive global distribution engine directly into the Zip app, the duo is unlocking short-term installment flexibility for top-tier retail, dining, entertainment, and travel brands. This integration lands at a time when short-term installment payments are shifting from an alternative checkout option to an expected cash flow management tool. According to Federal Reserve data, 15% of surveyed U.S. consumers utilized BNPL services, climbing steadily from 14% and 10% in previous years. For Zip’s 4.6 million active U.S. shoppers, the ability to split a gift card purchase into four interest-free payments over six weeks offers a seamless way to stretch their everyday budgets or manage peak holiday and seasonal gifting friction.

Zip (ASX: ZIP), the digital financial services company offering innovative, people-centered products for everyday Americans, and InComm Payments, a global payments technology company, today announced a partnership that brings installment buying to the gift card category. Through the integration, eligible shoppers can purchase popular gift card brands directly in the Zip app.

This reflects growing consumer appetite for more control over how and when they spend. According to Federal Reserve data, 15% of consumers surveyed in 2024 used Buy Now, Pay Later (BNPL) in the prior 12 months, rising from 14% in 2023 and 10% in 2021. With 4.6 million active customers in the US and 29,000 merchant partners, Zip is bringing that same flexibility to gift cards, giving consumers more flexibility over how they manage their spending.1

“Short-term installment payments have become a mainstream behavior, and our customers tell us they value this flexibility across all areas of their cashflow. Shoppers deserve more say over how they manage their money, and we’re committed to expanding flexible options to more consumers,” said Jinal Shah, Chief Marketing and Customer Officer at Zip. “We are excited to partner with an industry leader like InComm Payments. Their network puts the most in-demand brands in front of our customers, right when it matters.”

Gift cards available on the Zip app span popular retailers, entertainment brands, dining, and travel providers. Once eligible shoppers select a card and denomination, they can choose how to split the cost at checkout and complete the transaction without leaving the app.

“Our priority is to make shopping for gift cards quick and simple, whether consumers need a gift for a special occasion or simply want to treat themselves,” said Adam Brault, SVP of Financial Services at InComm Payments. “Partnering with Zip to bring more flexible payment options is an effective way to further take the stress out of the gift card shopping process.”

FF NEWS TAKE

Zip is executing a high-margin consumer acquisition play while keeping its balance sheet remarkably capital-light. Following an exceptional early 2026 trading update—where Zip reconfirmed a group revenue margin of 8% and a boosted operating margin guidance above 18%—CEO Cynthia Scott is clearly focusing on transaction frequency. Gift cards are the ultimate high-velocity, recurring purchase category. By keeping users entirely within the native Zip ecosystem to purchase and split these cards, Zip eliminates the friction of navigating external merchant checkouts.

The secret weapon here is InComm Payments. Managing over 1 billion cards annually across 525,000 retail points of distribution, InComm gives Zip instant, bulletproof access to the most coveted consumer brands in the world. Crucially, InComm’s advanced, multi-layered fraud prevention and geolocation technologies help mitigate the acute “chargeback” and cash-out risks that traditionally plague digital gift card lending. As Zip continues to experience explosive transaction volume growth in its U.S. division (surging over 40% year-on-year), embedding gift cards directly adjacent to a user’s standard debit or credit card integrations transforms the BNPL app from a situational shopping tool into a daily financial dashboard.