What's changing?
From 12 August 2025, we are retiring the instalments feature for new purchases. From this date, all new purchases will be placed onto a Flex repayment schedule, which requires making minimum monthly repayments.
If customers have an active instalment plan as at that date, these changes do not affect that plan - customers will be required to continue making their instalment payments.
Why is this happening?
We are simplifying the Zip Money product and how customers repay on their Zip Money account.
How does flex work?
A Flex repayment schedule requires customers to make minimum monthly repayments of an amount that is specified in the terms of their contract.
Subject to making their minimum monthly repayment, customers can choose the frequency of their repayments (weekly, fortnightly and monthly) and to make additional repayments.
What are instalments?
Zip Money Instalments is a repayment feature where purchases over $300 are automatically split into equal monthly repayments (instalments) to be repaid within the interest-free period offered for the purchase. This feature is being retired by Zip and will no longer be available for new purchases after 12 August 2025.
How do customers now repay? What if they make multiple transactions?
Customers would previously have had two separate repayments on their Zip account and account statement: one for the purchases being repaid according to their Flex repayment schedule and one for purchases being repaid according to an Instalment Plan (which was available for orders over $300). After this change comes into effect, customers will only be able to repay new purchases according to a Flex repayment schedule.
If customers want more information about their repayments, they can contact Zip Customer Service.
What does this mean for my customers who have made a purchase with me on instalments?
If customers have an active instalment plan on the date the change happens (12 August 2025), this change does not affect their plans - those customers will be required to continue making their instalment payments.
Will customers still be able to take advantage of the full IFP?
Yes, Zip Money will continue to offer up to 72 months interest free.
What does this mean for Interest Free messaging/ promotions?
Please use the new Zip Advertising Guidelines to make sure your messaging and disclaimers are up to date when promoting Zip and its product features. Notably, there are changes to how interest free periods must be advertised, which apply to all advertising from 12 August 2025. Review any interest free promotions to ensure they comply and follow the approval process outlined on page 10.
Do any of the transaction or refund processes change?
No, there will be no changes to the way you process transactions or refunds, this is a change to customer repayment options only.
Are instalment extensions turned off or are they still able to extend the interest free period?
Yes, instalment extensions will be turned off too for new orders.
How do repayments work for partial captures?
This will work as it did before instalments. Each captured amount starts its own interest-free period from the date it’s captured. For example, if $2,000 is captured today and $8,000 is captured 3 months later, each amount gets the IFP from its respective capture date.
How do our consultants/ sales/ floor staff now speak to Zip Money?
Staff should avoid the message that instalment plans will be available for new purchases made after 12 August 2025. When referring to interest free offerings, refer to 'up to [x] months interest free' to better reflect the flexibility customers can have when choosing to repay their accounts.
What changes are required to our disclaimers/website/assets/BPI?
If you have hosted assets, there is no action needed as these will automatically be updated to reflect the change.
If you have non-hosted assets, you will be required to remove any messaging relating to the availability of the instalment feature on Zip Money, including e.g. 'pay by instalments' and 'interest-free instalments'.
Please use the new Zip Advertising Guidelines to make sure your messaging and disclaimers are up to date.
What changes are required to our POS? What do we do with old POS? Will Zip be supplying updated POS?
Please remove and dispose of any Zip Money instore collateral that has been provided by Zip or created by your business. We have developed an updated flyer you can use until new material is available, download here.
What happens to orders authorised before the change date?
When an order is authorised, it creates an instalment schedule 'placeholder', so if it's not captured (partial or fully) until after 12 August 2025, it will still go to instalments. Any order authorised after this date will not go on instalments.