Zip exits NZ buy-now-pay-later market

Buy-now-pay-later provider Zip is putting a stop to its Zip Pay in 4 product.

It has told customers that, from mid-August, their account limit will drop to $0 and they can no longer make purchases.

Amounts currently being repaid will not be affected.

In a statement to the ASX, the company said it had made the decision after a strategic review of its business portfolio.

"The decision reflects Zip's strategic focus on investing in its Australian and US businesses, which continue to demonstrate strong momentum and profitable growth," it said. "Zip recognises the contribution of its New Zealand team, and is committed to supporting its employees, customers, merchants and business."

Massey University banking expert Claire Matthews said New Zealand had probably not been as profitable as the company hoped, amid strong competition from providers such as Afterpay.

"Potentially, New Zealanders are not using it as much as they might expect elsewhere, because of the work that's been done to discourage people."

She said the number of providers needed was limited.

"We have enough concerns about people having one. If you have multiple, it multiplies the problems."

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