NEW YORK — February 5, 2026
Executive Summary
Zip US has announced the U.S. launch of Pay in 2, a new short-term installment payment option designed to allow consumers to split purchases into two equal payments over a two-week period. The new offering expands Zip’s flexible payment portfolio in the United States and is positioned to support everyday spending within a single billing cycle. According to the company, Pay in 2 was developed in response to consumer demand for a shorter, more contained installment option suited for recurring and essential purchases such as groceries and household bills. The launch follows a pilot program that indicated strong customer adoption and repeat-use intent. Zip stated that Pay in 2 complements its existing Pay in 4 product by offering an alternative structure that aligns with bi-weekly income patterns while maintaining transparency and regulatory compliance. Loans associated with Pay in 2 are originated by WebBank and are subject to credit approval.
Announcement Overview
Zip announced the introduction of Pay in 2 as part of its ongoing expansion of flexible payment solutions available to U.S. consumers. The new payment option allows eligible customers to divide a purchase into two installments, paid over a two-week period, with the intent of supporting short-term cash-flow management for everyday expenses. According to the company, Pay in 2 is designed to provide a streamlined installment experience that concludes within a single pay cycle, reducing the need for extended tracking or longer repayment commitments.
The company stated that while its Pay in 4 offering has historically supported customers managing larger purchases over six weeks, Pay in 2 addresses a distinct use case focused on smaller, recurring, or routine spending. Zip indicated that this structure reflects observed consumer preferences for faster repayment and clearer budgeting outcomes when financing everyday transactions.
Zip further noted that the Pay in 2 launch builds on insights gathered during a recent pilot program conducted in the U.S. market. Data from the pilot, according to the company, showed high customer satisfaction and repeat-use intent, particularly for essential spending categories. The Pay in 2 product is now being made available more broadly to eligible U.S. customers as part of Zip’s flexible payment ecosystem.
Key Announcement Details
- Announcement type: Product launch
- Product name: Pay in 2
- Launch market: United States
- Payment structure: Two equal installments over two weeks
- Use case: Everyday and recurring purchases
- Related products: Pay in 4
- Loan originator: WebBank
- Credit approval: Required
- Regulatory note: Loans subject to applicable laws and disclosures
- Launch date: February 5, 2026
Strategic Context
According to the company, the launch of Pay in 2 reflects broader shifts in consumer payment behavior, particularly among users seeking alternatives to traditional high-interest credit products for short-term spending needs. Zip stated that many consumers manage income and expenses on bi-weekly or similar pay schedules, creating demand for payment options that align closely with those cycles.
The company indicated that Pay in 2 was designed to sit between single-payment transactions and longer installment plans, offering an option that concludes quickly while still providing flexibility. Zip emphasized that the product is intended to be used for everyday expenses rather than large discretionary purchases, aligning repayment timing with near-term income events.
Zip also noted that Pay in 2 was developed with attention to regulatory requirements and transparency standards applicable in the U.S. market. According to the company, all Pay in 2 loans are originated by WebBank and are subject to credit approval, with disclosures provided in accordance with applicable regulations.
The company positioned the launch as part of its broader strategy to offer multiple payment structures that address different consumer needs without extending repayment beyond what is necessary for the intended use case.
Product Structure and Consumer Use
Zip stated that Pay in 2 enables customers to split a qualifying purchase into two payments, with the first payment typically made at the time of purchase and the second payment due approximately two weeks later. According to the company, this structure allows customers to complete repayment before a longer installment plan would typically begin to accrue additional tracking or budgeting complexity.
The company indicated that Pay in 2 is designed to integrate seamlessly into Zip’s existing checkout and in-app experience, allowing eligible customers to select the option at the point of sale where available. Zip emphasized that the product is intended to support predictable repayment behavior by limiting the duration of the installment period.
According to the company, the shorter repayment window is particularly suited for essential spending categories such as groceries, utilities, and routine household expenses. Zip stated that these use cases informed both the design and positioning of Pay in 2 within its broader product lineup.
Customer Perspective
“Pay in 2 feels manageable and intentional, fitting naturally between paychecks,” said Destiny Modeste, a Zip customer. “It wraps up quickly, before it becomes something I have to track, which makes those everyday moments feel genuinely stress-free.”
Zip noted that customer feedback was a significant factor in shaping the Pay in 2 offering. According to the company, feedback collected during the pilot program highlighted the importance of shorter repayment cycles and reduced cognitive load when managing installment payments for routine purchases.
The company disclosed that the quoted customer testimonial was compensated, in line with standard disclosure practices.
Pilot Program Insights
Zip stated that the Pay in 2 launch follows a pilot program conducted in the U.S. that evaluated customer demand and usage behavior for a shorter installment product. According to the company, 95% of surveyed pilot participants indicated they would use Pay in 2 again, with future usage primarily focused on everyday spending categories.
The company reported that pilot participants cited use cases such as groceries, household bills, and other routine expenses as primary drivers for adopting Pay in 2. Zip indicated that these findings supported the decision to expand the offering beyond the pilot phase.
According to Zip, the pilot data reinforced the company’s view that consumers value installment products that are purpose-built for specific spending contexts rather than one-size-fits-all financing solutions.
Leadership Commentary
“We are constantly listening to our customers to understand how they want to pay and are committed to empowering them with alternatives to traditional high-interest credit products,” said Joe Heck, U.S. CEO at Zip. “Pay in 2 offers the flexibility to bridge the time between paychecks for smaller, recurring purchases without the commitment of a longer installment plan.”
Zip stated that the Pay in 2 launch reflects its broader focus on customer-informed product development and responsiveness to observed payment behavior trends in the U.S. market.
Incentive Program for Early Adoption
Zip announced a limited-time incentive program in connection with the Pay in 2 launch. According to the company, from February 9 through February 15, the first 100 customers per day who successfully initiate a purchase using Pay in 2 will receive one year of no origination fees on every subsequent Pay in 2 order.
The company noted that the incentive is subject to terms and conditions and is intended to support initial adoption and awareness of the new payment option. Zip stated that the incentive applies only to Pay in 2 transactions and does not alter the underlying credit approval requirements.
Regulatory and Disclosure Framework
Zip emphasized that all loans associated with Pay in 2 are originated by WebBank and are subject to credit approval. The company stated that disclosures regarding loan terms, fees, and repayment obligations are provided in accordance with applicable laws and regulations.
Zip also noted that customers can access additional information about Pay in 2 and Pay in 4 through its official website. According to the company, transparency and regulatory compliance remain central considerations in the design and rollout of its payment products.
Market Positioning
According to Zip, the Pay in 2 offering expands its range of flexible payment solutions available to U.S. consumers and allows the company to address a broader set of spending behaviors. Zip indicated that by offering both Pay in 2 and Pay in 4, it can provide differentiated options aligned with transaction size, repayment preference, and cash-flow timing.
The company stated that Pay in 2 is not intended to replace existing products but to complement them by serving a distinct consumer need. Zip positioned the launch as part of its ongoing efforts to provide accessible payment alternatives while maintaining responsible lending practices.
About the Company
Zip Co Limited (ACN 139 546 428) (ASX: ZIP) is a digital financial services company founded in Australia in 2013. The company provides point-of-sale credit and digital payment solutions designed to offer flexible and transparent alternatives to traditional credit products.
Zip operates across two core markets: Australia and New Zealand (ANZ) and the United States. Through its platform, Zip connects millions of customers with a global network of tens of thousands of merchants, enabling consumers to access installment payment options at checkout for both online and in-store purchases.
In the United States, Zip offers a range of buy now, pay later products designed to support different spending needs and repayment preferences. Globally, the company serves millions of active customers and supports merchant partners across multiple sectors, including retail, services, and digital commerce.
Zip’s business model emphasizes transparency, customer control, and responsible product design. The company has continued to expand its product portfolio and geographic reach while operating as a publicly listed entity on the Australian Securities Exchange.
Additional information about Zip is available at the company’s official website.
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