New Zealand online consumers primarily use cards and digital wallets, but they are also accustomed to payment methods that draw directly from a bank account, so BNPL, which links to a bank account or card and splits payments, has naturally spread. Zip is an Australian BNPL provider operating on the local merchant base it secured through its acquisition of PartPay, offering a short-term small-installment model centered on four payments. It is often considered alongside Afterpay, but since the review criteria and merchant fee structures differ, a side-by-side comparison is needed.

It is well suited for categories with significant seasonal spending, such as winter sports equipment and outdoor gear, or for a new brand's direct-to-consumer site looking to lower the barrier to a first purchase. As New Zealand has been working to bring BNPL under the framework of the Credit Contracts and Consumer Finance Act (CCCFA), keep in mind that changes to the operator's review policy can affect approval rates.

When a consumer selects Zip at checkout and passes identity verification and a credit limit review in the app or on the web, the order is confirmed immediately, and Zip then collects the subsequent installments from the consumer's bank account or card. Hecto Financial receives the NZD amount for the transaction, converts it, and settles it in the currency the merchant has contracted for.

Through Hecto Financial, a business in Korea can consider introducing Zip payments in New Zealand. Since BNPL tends to have relatively strict industry restrictions and transaction volume reviews, it is recommended to confirm your product categories in advance and consult on fees and the settlement cycle.

• Country of business registration

  Confirm contract eligibility for businesses registered in Korea

• Sales channels

  The integration method and priority vary depending on your online sales channel mix, such as direct-to-consumer sites, open marketplaces, and mobile apps

• Product categories handled

  You must confirm in advance whether your products fall under a category restricted by Zip's merchant policies

• Compliance with local regulations

  You must confirm compliance with New Zealand's payment and foreign exchange regulations (under the jurisdiction of the RBNZ and FMA) (see official sources below)

From the merchant's perspective, the flow of funds is split into two stages. First, Hecto Financial receives the New Zealand transaction amount in NZD, and then, after conversion, pays it out in USD, KRW, or JPY as set in the contract. The consumer's installment repayment schedule operates independently of the merchant settlement cycle. When a refund occurs, Zip's installment cancellation process runs alongside it, so it is a good idea to confirm the partial refund criteria in advance.

• Reserve Bank of New Zealand (RBNZ), Financial Markets Authority (FMA)Official information on New Zealand's payment systems and financial market regulations. If this page's content differs from the actual regulations, the official source takes precedence.