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Cato lifts AOV 50% by adding Zip alongside existing BNPL
May 19, 2026
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Cato converted additional customers, increased basket size, and drove incremental revenue by adding Zip flexible payments alongside its existing BNPL offerings in-store, all while avoiding a complex, technical integration.
Wins at a glance
50% increase in in-store AOV 5
4 weeks to go live
Company details
Size: Enterprise
Industry: Retail
About company: Cato is a U.S.-based apparel retailer focused on delivering accessible, on-trend fashion through a nationwide network of brick-and-mortar and online stores.
Partner since: 2025
Bagging bigger baskets in store
Cato primarily serves customers in-store, where speed and simplicity at checkout are essential. Even with an existing BNPL provider in place, CATO knew there were still missing customers at checkout. They set out to fill the gap.
The challenge
Cato was no stranger to BNPLs. The retailer already had one in their payment stack, but they knew they could do more to support additional high-intent shoppers. They wanted to find a payment solution to reach the customers their payment stack wasn’t reaching and unlock true incremental growth at the register.
As a store-first retailer, the team needed a solution they could easily roll out to their physical locations. Cato was looking to build out their existing payment stack and not cannibalize existing payment options. They needed to:
Increase in-store spend without slowing down checkout
Reach new customers beyond existing BNPL coverage
Expand access for shoppers ready to buy but not converting
Launch quickly across stores with minimal lift or added technical burden on store systems
The solution
When evaluating BNPL providers, Cato searched for a partner that could complement its existing payment stack by serving incremental customers who weren’t using traditional payment, financing or other BNPL providers. In August 2025, CATO launched Zip’s Pay in 2, 4 and 8 in under a month across stores nationwide. They chose a quick virtual card integration, which didn’t require a complex technical integration.
Cato paired installment offerings with tailored in-store signage that surfaced flexible payment messaging at key moments throughout the shopping experience. This gave customers greater confidence to move forward with their purchase. The retailer also took advantage of free in-store training for their associates to drive adoption and offer great customer service at critical decision moments.
Cato’s decisions not only led to bigger baskets, more customer conversion, and incremental revenue that wasn’t there before, they also gave customers who weren’t served by their existing BNPL or traditional financial services a way to say yes. What started as a lightweight addition became a powerful way to support a wider range of shoppers.
Zip products used
Ring up more revenue with flexible payments
Turn every checkout into a bigger basket by giving your customers more ways to pay and the flexibility they expect.