NEW YORK CITY, SYDNEY – 4 August, 2022 – Cover Genius, the leading insurtech for embedded insurance, has announced a partnership with Zip Co, a global Buy Now, Pay Later (BNPL) player, to offer customers tailored protection embedded into the payment process and Zip’s wallet experience. The partnership expands Zip’s BNPL offering by not only protecting purchases in the moment, but also allowing customers to add protection to their recent purchases.
“With the global BNPL market expected to reach $680B by 2025, we’re thrilled to partner with Zip to protect the growing number of worldwide BNPL customers,” said Angus McDonald, Co-Founder and CEO of Cover Genius. “Zip is a popular payment option and is uniquely positioned to protect their customers at point of sale but it also has a tremendously loyal and engaged customer base, meaning they’re able to further develop the relationship with embedded protection in their popular wallet, while also doing away with arcane multi-year products backed by traditional insurers who produce poor customer outcomes.”
The partnership integrates XCover, Cover Genius’ global insurance distribution platform, into Zip’s alternative payment platform for a seamless customer experience that is designed for ultimate flexibility. The feature will give Zip Pay and Zip Money customers the ability to add protection to their Zip purchase, either during checkout or after checkout on select purchases, making it an affordable and timely alternative.
In an initial launch, customers will be offered transaction monitoring, where they can protect their recent purchases —with a first-of-its-kind solution that leverages transaction data to offer protection that is tailored for relevance and renewed on an annual, recurring basis. Insurance options will also be available for Zip customers at checkout, with XCover’s Natural Language Processing utilised to identify relevant items.
The solution launches initially in Australia, meeting the needs of consumers worldwide, 61% of whom — driven primarily by convenience — are highly interested in transaction-based insurance offers from financial institutions, according to recent research from Momentive.ai and PYMNTS that was commissioned by Cover Genius.
“We’re excited to collaborate with Cover Genius to offer Zip’s customers real time, relevant offers for their online purchases,” said Larry Diamond, Co-Founder and Global CEO at Zip. “We know that our customers want flexibility and peace of mind when making major purchases, and Cover Genius’ embedded technology does exactly that in a seamless and convenient way.”
“This partnership also perfectly aligns with our ethos of creating a financially fearless world. We put our customers at the centre of everything we do, so it’s important to us that we can arm them with the ability to shop confidently and protect the items that they care about in a way that is affordable and tailored to their purchases.”
Through this partnership, Cover Genius has the potential to address Zip’s 11 million+ BNPL customers, giving them access to real time protection that’s embedded into their purchase journey. Amid the rapid growth of the fintech sector, there is a huge demand (up to 96% according to the survey) for banks, neobanks, wallets, accounting platforms, BNPLs and other fintechs to protect their customers in this way.