Finance, Personal

Zip Canada Review For 2023

Buy Now, Pay Later (BNPL) services are the perfect option whenever you wish to buy a product without paying full price at once. 

BNPL services can also act as a “life saver” during moments when you have to make an emergency purchase but don’t have the full amount at hand. 

Many Canadians are now dumping credit cards for Buy Now, Pay Later services because of the Zero interest-rate loans that BNPL gives out.

It is even more interesting when you find out that the continuous proper usage of Buy Now, Pay Later services does not affect your credit score. 

One of the top BNPL providers in Canada and all over the world is Zip. The company keeps gaining more customers because it supports large retailers like Best Buy, Walmart and Amazon. 

With Zip Canada, you can easily buy products from your favourite retail stores with an option to pay in four installments over a period of 6 weeks.

In this post, I will give you a comprehensive Zip Canada review and also compare the company with other BNPL service providers in Canada. 

Let’s get into the details!

Zip Canada Review

What is Zip?

Zip Co Limited, often abbreviated as “Zip Co” or “Zip”, is an Australian-based financial technology company that was founded in 2013. 

Zip Co has been operating from its headquarters in Sydney before acquiring Quadpay, a US-based “Buy Now, Pay Later” company in 2020. 

The acquisition of Quadpay helped Zip Co to quickly grow its footprint in America. 

As of today, Zip Co has successfully established operations in the USA, UAE, South Africa, Saudi Arabia, Poland, the Philippines, New Zealand, Mexico, India, Czech Republic, Australia and Canada. 

Currently, Zip Co has partnered with more than 90,000 retailers and the company serves 12million+ customers worldwide. 

Does Zip Work in Canada?

Yes, Zip Canada is the brand name under which Zip Co Limited operates in Canada. 

After acquiring Quadpay’s parent company, the Canadian subdivision called Quadpay Canada also became a part of Zip Co Limited. That is the reason why you might keep hearing of Zip Canada instead of Zip Co.

As of today, numerous retail companies in Canada support the option to checkout with “Buy Now, Pay Later” services like Zip Canada when shopping online. 

When you choose Zip Canada as your preferred payment option for a product, you simply get the luxury of breaking the payment into four installments. 

See the next section below for a detailed explanation of how the Zip Canada installment payment works.

How Does Zip Work in Canada?

Just like many other Buy Now, Pay Later (BNPL) service providers, Zip Canada lets you pay for any product in four installments over 6 weeks. 

At the moment, Zip Canada service is only available when shopping online and not in-Store. 

However, you can always generate a Zip Pay Visa card and add it to your Google Pay or Apple Pay wallet for making payments at your favourite local store. 

To enjoy the service, you have to download the Zip Pay app and install it on your smartphone. Then go ahead and signup by setting up a new account with your details. 

Once you’ve set up a Zip account, you will be able to log in and use the Zip Pay services with any supported retailer in Canada when shopping online. 

Whenever you choose to make a purchase with Zip Pay, the price of the product will be divided into four installments. 

Your debit or credit card will be debited for just 25% of the purchase (one installment) while Zip Co Limited pays the retailer in full.

This simply means that Zip Canada loaned you 75% of the product amount while you only got to pay for a 25% (one installment) down payment on the spot.

The loan given to you by Zip Canada will be divided into 3 installment payments that will be due every 2 weeks. 

This gives you a total of 6 weeks to pay back the 75% portion of your purchase at your convenience.

You can also go ahead and repay your full loan even before the six weeks given to you by Zip Canada. 

Which Stores in Canada Use Zip?

Currently, there are dozens of stores in Canada that support Zip Pay as a payment method during checkout. 

Here are some stores listed on the Zip Canada website:

  • Newegg
  • Fanatics
  • Famous Footwear
  • Glamnetic
  • Bed Bath & Beyond
  • Bumpboxx
  • The Daebak Company
  • Gadgetward
  • Nourish Clean Beauty
  • Ungalli
  • Pokoloko
  • Sole Seriouss
  • Famous Footwear
  • Naturalizer
  • Lids

Meanwhile, there are many other stores in Canada that support Zip Pay but aren’t on the above list. 

Also, bear in mind that Zip allows you to generate a Visa debit card which you can always use to make purchases from merchants and stores that do not support Zip services by default.

Is Zip a Legitimate Company? 

Yes, it is legit and safe to use Zip services for making purchases in Canada and every other part of the world. 

Zip Co Limited is a trustworthy company that has been providing secure digital payments to customers in several countries since 2013. 

Since its inception, Zip has built a solid reputation for providing secure and protected payment platforms that allow customers to make their purchases with peace of mind. 

The company uses the latest security systems in protecting the information of its customers online. 

Their cutting-edge systems and state-of-the-art technology ensure that individuals remain safe and their sensitive data is completely safeguarded from any malicious activities or activities. 

Aside from slight glitches that are common to every mobile app, there has hardly been any report about the Zip Pay app or accounts being hacked. 

It is also pleasing to know that Zip Co Limited has never been reported by the media as having regulatory issues with government agencies in Canada. 

All in all, Zip remains an ideal choice for those looking for an outstanding payment processing solution for their needs.

What are Zip Fees in Canada?

Now you may probably be wondering, are there any fees associated with using Zip? If there are, what are the fees?

When it comes to fees, Zip Co limited differs slightly from other Buy Now, Pay Later services in Canada.

Here is a list of fees that apply generally when you use Zip:

  • $1 convenience fee (per installment payment)
  • $5, $7, or $10 late fee depending on your province

As you can see, Zip Canada and all other branches worldwide will charge you a convenience fee each time you make an installment payment. 

Also, you will be charged a fee whenever you fail to repay your loan on time.

How to Open a Zip Account in Canada

So now that you have known almost everything you need to know about Zip Canada, how do you open an account?

The process of opening a Zip account is just as easy as signing up for any other online services you regularly use. 

To open a Zip account in Canada, you will need to provide the following information.

  • Name
  • Physical Address
  • Date of birth
  • Canadian mobile number
  • Debit or Credit Card (for loan repayment and first installment payment)

Once you have all the above information, all you have to do is visit this page and click on “Get the Zip App” and you can easily open your new Zip account.

Please note: Zip Canada usually requires a mobile number and SMS verification instead of the traditional username and password.

How Can I Repay a Zip Loan in Canada?

For as long as the debit or credit card added to your Zip Pay account is functional, your Zip loan repayments should be deducted automatically. 

Zip Pay will also keep you notified on the mobile app or via text message about the due date of your next installment payments. 

In addition, there is an option on the Zip Pay app that allows you to repay your Zip loan in full or in part even before the due date. 

Can I Repay a Zip Loan Earlier or Later?

Well, this is totally dependent on your situation at the time you take a Zip loan.

Normally, Zip Pay will automatically deduct your installment payments every two weeks until your loan is fully repaid. 

However, Zip also allows users to repay their loans earlier than the due date at no cost or fee. 

And if you sense that you might not be able to repay an installment on the due date, Zip also allows users to extend their payment period to a later date.

What Happens if I Can’t Pay a Zip Loan on Time?

As mentioned earlier, Zip Canada and all other branches around the world charge a $5, $7, or $10 late fee depending on your province when you don’t pay back on time. 

You will also be notified via email as Zip keeps reattempting to deduct your loan repayment from the credit or debit card linked to your account.

It is also stated that Zip usually reattempts to deduct your payment on the next business day whenever a scheduled payment fails. 

And things could get worse because Zip has officially stated on its website that poor repayment history could affect a user’s credit score in the long run. 

Pros and Cons of Zip Canada

While reading some of the sections above, you might already be seeing the good and bad sides of using Zip services for making purchases.

But let’s make things clearer by highlighting the major pros and cons of Zip Canada.


  • Zero-Interest loans: Zip Canada gives free access to interest-free loans that allow you to buy products and pay later in installments over 6 weeks
  • Flexible repayment options: Aside from the automatic bi-weekly deductions, Zip also allows its users to pay off their loans at once or with a bigger installment before the due date
  • Multiple partner stores: Zip pay is currently supported by multiple retailers in Canada.
  • Non-partners support Zip Pay Visa card: With the Zip Pay Visa card. As a result, you can easily buy products from non-partner retailers and enjoy the luxury of paying back in installments.


  • Credit Limit: Zip Canada does not give an “infinite” amount of loans. Zip always allocates a credit limit to each account and that determines the maximum you can spend.
  • Bad Credit score when users have poor repayment history: Zip has clearly stated on its website that a poor repayment history can affect a user’s credit score in the future. 
  • Good repayment history doesn’t improve credit score: While a bad repayment history has consequences, the other side doesn’t. If you repay your Zip loans on time, don’t expect your credit score to improve by that. 

Zip Canada Alternatives

To have a more robust Zip Canada review, I have put together a table that compares the company with other Buy Now, Pay Later service providers in Canada. 

If you are not okay using Zip, check out the table below to see which Buy Now, Pay Later service provider in Canada is most suitable for you.

Active consumers worldwide12 million+19 million+150 million+
Interest on loansN/AN/AN/A
Partner stores90,000+63,000+450,000+
Locations (countries covered)12845
Installment payments methodInstant payment of 25% of an order value and then the remaining is paid in installmentsInstant payment of 25% of an order value and then the remaining is paid in installmentsFour installment payments
Late payment feesYesYesNone
Supported repayment optionsAll Debit and Credit cards including AMEX cards(only prepaid credit cards are unsupported)Mastercard, domestic VISA, AMEX (except international-issued cards and Interac e-Transfer)All major credit and debit cards (except prepaid and AMEX cards)

Zip Co limited clearly outshines Afterpay when it comes to the number of partner stores. However, Klarna still stands out as the overall winner among these three.

The fact that Klarna doesn’t charge late payment fees also puts it ahead of Zip and Afterpay. 

RELATED: Afterpay Canada Review

How to Choose the Best BNPL (Buy Now, Pay Later) service  in Canada

From the previous section above, you must have seen that there are other better BNPL service providers in Canada aside from Zip. 

This is the reason why it is essential that you get all the right information before choosing a BNPL service to use. 

Check out the highlighted points below to understand the major factors you should consider before choosing a Buy Now, Pay Later service in Canada.

  • Fees, Interest rate and Fines: Many of the BNPL service providers offer interest-free loans and that is really good. However, companies like Zip Co Limited often charge a convenience fee per installment repayment. And almost all the BNPL companies have a fine or some sort of “penalty” for users that consistently default on their loans.  
  • Credit Limit: All the BNPL service providers in Canada have a credit limit they set for individual users. So, it’s your duty to make sure you opt for a BNPL service that will give you the best credit limit.  
  • Supported payment methods: There are a few variations in the type of credit and debit cards supported by each BNPL service provider. Ensure that you only open an account with a BNPL company that supports your loan repayment method.
  • Number of partners: it is also crucial that you select a BNPL company that is supported by some of your favourite retailers. You will hardly have issues paying for products if your favourite store is a partner of the BNPL company by default. 

Take Away on Zip Canada Review

Zip Canada is a great option for those who want to make online purchases without having to pay upfront. 

This Zip Canada review has covered everything you need to know about this great Buy Now, Pay Later service provider.

It has also provided you with some of the alternatives available for you in Canada and some tips on how you can choose the best option.

Hopefully, this article helped you understand what Zip Canada is, how it works and how to use it. 

If it has been helpful, please share it with others who may be considering using Zip Canada. Thanks for reading!

FAQs on Zip Canada Review

Why did Zip not approve me?

Zip Co will not approve your account if the identity you presented is unverifiable. 

Your account might also not be approved if you do not meet the customer assessment guidelines of Zip Co limited. 

Does Zip check credit?

Although Zip does a credit check, it does not do a hard credit check but rather a “soft” one. This simply means that Zip can approve your account even if you have a bad credit score or no score at all.

What is the minimum to spend in a Zip?

Some reputable sources claim that the minimum purchase amount is $35 when using Zip. 

You should also be aware that your purchases cannot exceed whatever credit limit that Zip assigns to your account.

Can I pay any bill with Zip?

Sure, you can use Zip to pay for anything as long as the merchant supports Visa Debit cards. 

With your Zip Pay Visa card, you can easily pay tax bills, school fees, phone bills and utility bills. The loan will reflect on your Zip account and you would be expected to pay it back in installments as usual. 

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About John Adebisi

John Adebisi is a CPA, FCCA and MBA holder with a Bachelor's degree in Accounting & Finance. He has over a decade of experience in writing personal and business finance content for audiences across North America, Europe, the UK and Africa. In addition to his writing experience, he also has a strong background in financial research and analysis, giving him a unique perspective of the financial markets. John derives pleasure in helping people make smart financial decisions, and he believes that knowledge and experience can be valuable resources for anyone who wants to learn how to manage their money.

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