Zip Follows Laybuy Out of New Zealand
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Another buy now, pay later service is leaving New Zealand, and this time it's Zip.
The Australian-founded company has confirmed it will wind down its New Zealand operations, ending its Pay in 4 product — the one that let shoppers split purchases into four interest-free payments over six weeks — by August 16, 2026.
In an email to customers, Zip Co NZ Finance Limited was blunt: "We are writing to let you know that on August 16, 2026, your Spend Limit under your Pay in 4 Account will reduce to $0.00 and you will no longer be able to make new purchases."
Anyone who still has an outstanding balance doesn't get off that easily. The company confirmed consumers would still be required to make all payments under any payment schedules on the dates specified. You borrowed it, you still owe it.
The official reasoning, per Zip, is strategic focus. Following a review of its business portfolio, the company said it had decided to commence an orderly wind down of its New Zealand operations, with the decision reflecting its focus on investing in its Australian and US businesses — markets the company said continued to demonstrate strong momentum and profitable growth. New Zealand, apparently, did not make that cut.
A spokesperson said the company "recognised the contribution of its New Zealand team and is committed to supporting its employees, customers, merchants and business partners throughout the transition." The financial impact of the wind down was expected to be "immaterial to the Zip Group" — which tells you pretty much everything about how significant this market was to them.
This is the second major BNPL exit New Zealand has seen in just over a year. In June 2024, Kiwi-founded Laybuy suspended all payment services, leaving merchants scrambling. Laybuy had told merchants at the time: "Laybuy's services are currently suspended, including all payment options" and that it didn't "currently have a resolution timeframe".
The pattern is hard to ignore. BNPL boomed during the low-interest, spend-happy years and is now contracting sharply as the economics get harder. For retailers who leaned on these services to smooth out the checkout experience, two exits in 13 months is a problem. For shoppers used to splitting that $120 jacket into four painless instalments, the safety net is getting smaller.
Zip's departure leaves Afterpay as the only major buy now, pay later operator still standing in the New Zealand market — a field that once looked crowded now whittled down to a single main player.
Zip was founded in Australia in 2013. It grew quickly across the US, Australia and New Zealand. Now it's two out of three.