Google Pay To Add Buy Now, Pay Later Options

Google Pay has partnered with Affirm and Zip to add Buy Now, Pay Later features next year.

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Google Pay announced partnerships with fintech firms Affirm and Zip to add a buy now, pay later (BNPL) feature as a checkout option for online shoppers in the U.S. starting next year.

In January, Google Pay will partner with Zip for a pilot test using the Zip Pay-In-4 service as an option for shoppers. In the first quarter of 2024, Google will partner with Affirm to launch Affirm Pay in 4 as a monthly payment option for shoppers.

"People are shopping on Google more than a billion times per day, and consumers are increasingly looking for more choice and flexibility when it comes to payment options,” Drew Olson, senior director of Google Pay, said in a statement. "By teaming up with pay over time providers like Affirm, we are able to give Google Pay users more payment options when checking out, while providing merchants with another tool to drive their growth.”

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Google Pay joins a growing list of companies offering BNPL features. These include Apple's October launch of Apple Pay Later, a BNPL payment service that lets users split certain purchases into four equal payments spread across six weeks.

How to use BNPL on Google Pay

Shoppers using Google Pay at checkout will see a promotional banner letting them know that BNPL options are available. If the shopper taps on this banner or selects BNPL as their form of payment, they will then see a list of BNPL providers including Zip and Affirm, along with details on their product offerings.

The user can then select a provider to learn more about the terms and conditions and timing of payments. From there, shoppers can through a few steps to get approved and complete their purchase.

Learn more about Zip here and Affirm here.

BNPL growing in popularity

BNPL loans continue to grow in popularity with many retailers offering them at the point of sale for both in-store and online, as Kiplinger previously reported. While these loans let you break up a large purchase into smaller payments, sometimes with zero interest, there are certain risks involved with buy now pay later plans, including overspending, studies show.

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Joey Solitro

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.