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Australian millennials are ditching their credit cards in droves, and naturally retailers are gradually cottoning onto the future of commerce: buy-now pay-later (BNPL).
Amazon Australia has tapped one such BNPL service provider for its first foray into the payment option.
Zip (ASX: Z1P) has entered into an agreement with the ecommerce giant that will see the service become Amazon Australia's first instalment payment option.
"This agreement puts Zip firmly on the main stage by allowing customers shopping on Amazon.com.au to see Zip to pay at their pace," says Zip CEO and managing director Larry Diamond (pictured).
"The agreement delivers a fantastic experience for customers who are looking to own the way they pay."
In connection with the agreement Zip will issue to an Amazon affiliate warrants to acquire up to 14.6 million ordinary shares in Zip at $4.70 per share, valuing the deal at approximately $69 million.
Amazon Australia anticipates it will launch Zip on the platform sometime today.
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