Zip Co buddies up with neobank 86 400

Zip Co buddies up with neobank 86 400

Fintech Zip Co (ASX: Z1P) is continuing its play for buy-now pay-later (BNPL) supremacy after entering into a new partnership with neobank 86 400.

Announced today, the two have entered into a partnership that will see the pair combine their technological expertise in a bid to drive more Australians away from traditional financial products and towards the new world of smartbanks and BNPL.

The first move for the two will see 86 400 customers able to link and view their Zip Pay and Zip Money accounts, transactions and balances within the 86 400 app.

The new partners plan on further enriching 86 400's service with the integration of Zip's 'Customer Experience Engine' into the smartbank app.

"Millions of Australians are looking for new and better ways to pay and are adopting smarter technologies, such as 86 400 that help them better manage their banking," says Zip Co CEO Larry Diamond (pictured).

"It was an absolute pleasure working with 86 400, a digital-first organisation like Zip, where customers can now access the latest in everyday banking. We are equally excited about new features that make it even easier for customers to leverage both companies' offerings within a seamless digital experience."

"Both Zip and 86 400 invest heavily in technology, and we have a single-minded focus on doing what's right for the customer, every second of every day."

Both Zip and 86 400 are two fintech players on a steady rise.

Earlier in June Zip announced one of its biggest plays to date after entering into a deal to acquire New York-based BNPL company QuadPay.

If the deal goes ahead it will see Zip Co's annual total transaction value lifted by almost $900 million, representing an increase of around 43 per cent for the group.

Similarly, neobank 86 400 has made headlines for its strong launch into the Australian banking market and its successes since.

The company launched in Australia in September 2019 with two accounts called Pay and Save, both of which are only available via the 86 400 app.

Those interested in using the platform do not even have to switch their bank accounts to an 86 400 account; users can connect and view their existing bank accounts, plus their credit cards and home loans, all within the app.

In early April, just seven months since it launched, 86 400 announced it had amassed 17,000 user accounts and attracted $90 million in capital.

A large chunk of that funding was the result of a $34 million Series A capital raising in March, designed to accelerate the company's growth.

On the back of announcing the partnership today shares in Z1P are up 5.50 per cent to $5.96 per share at 10:20am AEST.

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