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The challenge

BNPL has seen phenomenal growth over the last few years, as customers switched from traditional forms of credit to more flexible alternatives.

The #1 feedback users asked was an easier way to pay with their Zip account. For Zip, that growth was restricted by a bespoke barcode technology, requiring stores to integrate with Zip's systems to accept payments.

Buy Now Pay Later was offering an attractive alternative to credits but was making the experience of spending that credit less intuitive compared to what banks were doing.

Methodology

Day 0 to Day 5: Google Design Sprint — Getting users, legal, fraud, data, product & stakeholders all involved early on was vital. We defined the challenge in the first three days, sketched out ideas, and built prototypes. By day four, we were testing with users and gathering feedback.

• Users were excited to use their Zip credit by simply tapping a digital card on an EFTPOS machine. They were already doing it with their debit cards; it felt natural to use the same action to pay with Zip.

• Some concerns around the technology being too easy to use and fear of overspending crept in. These were new challenges for us.

Design tasks were varied. From running quantitative and qualitative interviews with users and non-users, creating card design concepts, updating user flows, putting together journey maps and managing internal and external stakeholders (Apple, Google, Visa). After the design sprint, it was a real team effort to design, refine and deliver the first BNPL card available in Apple and Google wallets in Australia.

💡 Some of the problems we overcame during the project:

• Onboarding: Zip Pay users have the freedom to repay their monthly statement based on what they can afford. We knew that having access to a digital card would increase our users' spending. As part of the card provisioning flow, we thought we would ask users to increase their monthly repayments to mitigate their spending and build better financial habits. The idea divided the team, so we ran an A/B test in production. After only 30 minutes of the A/B test being live, it was clear that the extra step in the flow was significantly impacting feature adoption, and we removed it.

• Product construct: Zip offers two different products, Zip Pay and Zip Money. The regulation slightly differs for both products. We incorporated both products into the design and user testings but had to descope Zip Money to reach our deadline and went live with Zip Pay only.