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Accept Zip payments
Last updated: June 4, 2026
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Zip is a Buy Now, Pay Later (BNPL) payment method available in the US and Australia that enables buyers to split purchases into interest-free installments with flexible payment terms. Through PayPal's integration, you can offer Zip's payment products: Pay in 4 installments (US) and multiple credit products ranging from AUD $1,000 to $50,000 credit lines (Australia). Payments settle to your PayPal account within T+3 (3 business days), creating a checkout experience that increases purchasing power and buyer satisfaction.
| Countries | Payment type | Payment flow | Settlement currency | Minimum amount | Refunds |
|---|---|---|---|---|---|
| US, AU | Buy now, pay later (BNPL) | Redirect | USD, AUD | From $35 USD / $0.01 AUD. See Payment amount limits. | Yes, full/partial/ multiple refunds (no expiration) |
Key features
Zip helps your business:
- Receive full payment in 3 business days, while buyers pay in installments with Pay in 4 in the US or flexible credit lines in Australia.
- Offer flexible payment options: Pay in 4 installments in the US and multiple credit products in Australia with credit lines up to AUD 50,000.
- Increase average order value as buyers are more likely to complete purchases when they can spread payments over time.
- Expand to key markets with support for the United States and Australia where Zip has established operations.
- Simplify integration through PayPal's existing payment platform with minimal development effort.
How it works
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Buyer: Selects Zip as their preferred payment method at checkout
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Merchant | Partner: Creates an order using PayPal's Orders v2 APIwith Zip as the payment source
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PayPal: Returns an order ID and a redirect link for Zip approval
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Merchant | Partner: Redirects the buyer to Zip for payment approval
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Buyer:
1. Logs into their Zip account
2. Reviews payment schedule (Pay in 4 instalments or credit options)
3. Approves the payment
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PayPal:
1. Processes the Zip payment, where Zip pays the full amount to the merchant on behalf of the buyer
2. Automatically captures the full payment amount upon approval
3. Redirects the buyer back to the merchant's website
4. Sends webhook notification to the merchant
5. Settles money to the merchant's PayPal account within T+3 (3 business days)
-
Merchant | Partner: Confirms payment completion and fulfils the order
Note: The buyer separately settles the payment to Zip according to their chosen instalment schedule.
Eligibility
- Account type: Verified PayPal Business account required with KYC completion.
- Geographic availability: Available to merchants in the US and Australia.
- Buyer coverage: Buyers in the US and Australia can pay using Zip without creating a PayPal account.
- Platform availability: Available for PayPal for Business integrations using the Orders v2 API.
- Transaction amounts: Accept payments starting from $35 USD in the US and $0.01 AUD in Australia. For detailed limits, see Payment amount limits.
- Settlement: T+3 settlement to the merchant's PayPal account.
- Merchant categories: Restricted merchant categories apply. See Supported merchant categories.