The US BNPL market is segmented by model, ranging from long-term installments to biweekly pay-in-four plans, and Zip's US business focuses on splitting order amounts into four payments over six weeks. It's a case of Australia's proven model being brought to the US through the Quadpay acquisition, and the fact that it's designed to work on top of existing card payment infrastructure lowers the barrier to integration.

Because the first installment is only about a quarter of the order amount, it substantially lowers the psychological barrier to purchase for items in the $100-$300 range. For merchants selling impulse-buy categories like sneakers, streetwear, and small electronics to younger US consumers, Zip may fit the customer base better than Affirm, which is geared toward larger, longer-term installments.

When a consumer selects Zip at checkout, a real-time eligibility check runs and a 6-week, 4-installment schedule is presented, and the order is approved once the first installment is paid. Zip automatically bills the consumer for the remaining installments, and regardless of how those installments proceed, the merchant's proceeds are collected by Hecto Financial in USD, converted, and paid out in the contract currency.

Korean merchants can consider accepting Zip through Hecto Financial without a separate US-based contract. As with any BNPL method, there is category and product screening in common across the board, and the US business's support terms may differ from those in Australia, so US-specific terms should be confirmed separately. Detailed terms are finalized through consultation with the sales team.

• Business registration country

  Confirm contract eligibility for businesses registered in Korea

• Sales channels

  Integration method and priority vary depending on your mix of online sales channels — owned site, marketplace, mobile app, and so on

• Product categories

  Advance confirmation is needed on whether your category falls under Zip's merchant restrictions

• Local regulatory compliance

  Confirmation is needed on compliance with US payment and foreign exchange regulations, including federal and state consumer protection rules and card network rules (see official sources below)

The flow of Zip proceeds follows the sequence: consumer pays in USD, Hecto Financial collects it in USD, conversion happens, then payout follows in USD, KRW, or JPY as selected under the contract. The consumer's installment schedule has no bearing on the timing of settlement, and if a refund occurs, Zip adjusts the consumer's installment schedule on its end, so the merchant only needs to manage the refund reflection deadline and exchange-rate basis under the contract.

• Federal ReserveOfficial information on US payment systems and electronic funds transfer regulation (Regulation E). If this page's content differs from actual regulations, the official source takes precedence.
• Consumer Financial Protection Bureau (CFPB)Official information from the federal oversight body for US consumer finance and payment disputes.