Australia's buy now, pay later sector has entered what analysts are calling "a new phase of innovation", following the announcement by ZipPay of a product designed to help customers meet their existing ZipPay commitments.
The new product, ZipFloat, allows customers who are experiencing difficulty with existing ZipPay payment schedules to restructure those obligations across a new deferred payment plan. The restructuring fee is $12.99, payable in four fortnightly instalments using ZipPay.
The restructuring fee can also be deferred using ZipFloat Plus.
ZipFloat Plus fees are not deferrable at this time. A roadmap exists.
The Innovation
A ZipPay spokesperson described ZipFloat as "a meaningful step forward in our mission to improve financial wellbeing for everyday Australians". When asked to clarify how a product that defers debt in exchange for additional fees improves financial wellbeing, the spokesperson noted that customers now have more flexibility. Flexibility was mentioned four times in the product launch press release. Financial wellbeing was mentioned eleven times. The word "fee" did not appear.
"We are meeting customers where they are. Where they are, in many cases, is unable to pay us. We see that as an opportunity to deepen the relationship."
The parent company's market capitalisation has risen 23% since the announcement. The company, which was valued at approximately $6 billion at its 2021 peak before a regulatory reset, two capital raises, and a board restructure, is now described as "stabilised and growing".
The Consumer Perspective
A survey of 3,800 Australian BNPL users conducted by consumer advocacy group Financial Rights Legal Centre found that 71% had used BNPL to purchase items they could not otherwise afford. 44% had used one BNPL product to repay another. 18% reported difficulty identifying how many active BNPL accounts they held.
The BNPL industry body responded to the survey by describing the findings as evidence that the sector is "meeting real and underserved consumer needs".
A Senate inquiry into BNPL practices is scheduled for Q3. Industry representatives will present. Consumer advocates will present. The outcome will be explored at a follow-up session in Q4. Early registration details will be shared soon.
The Regulatory Picture
The Treasury Laws Amendment (Payments System Modernisation) Act 2025, which came into effect in December, brought BNPL providers under the consumer credit regulatory framework for the first time, requiring responsible lending assessments for products exceeding certain thresholds.
ZipFloat's restructuring fee falls below the threshold. This was confirmed by ZipPay's regulatory team before the product was named.
ASIC confirmed it is "monitoring the sector closely". A review is anticipated. The review timeline will be communicated following the commencement of the review scoping phase.
Financial Inclusion: A Note
The Immutable Ledger notes that at a recent industry panel on financial inclusion, the term was used 14 times in 20 minutes — a rate of approximately once every 86 seconds. On each occasion, it was used in relation to a product that charges fees to people who cannot currently afford to pay for things. The panel concluded with cautious optimism.
Cautious optimism was not available for comment.
