By Joy Dumasia
August 05, 2022
- Buy Now Pay Later
Cover Genius, the insurtech for embedded insurance, has announced a partnership with Zip, a global Buy Now, Pay Later (BNPL) player, to offer customers tailored protection embedded into the payment process and Zip’s wallet experience. The partnership expands Zip’s BNPL offering by protecting purchases in the moment and allowing customers to add protection to their recent purchases.
“With the global BNPL market expected to reach $680B by 2025, we’re thrilled to partner with Zip to protect the growing number of worldwide BNPL customers,” said Angus McDonald, Co-Founder and CEO of Cover Genius. “Zip is a popular payment option and is uniquely positioned to protect their customers at point of sale, but it also has a tremendously loyal and engaged customer base, meaning they’re able to further develop the relationship with embedded protection in their popular wallet, while also doing away with arcane multi-year products backed by traditional insurers who produce poor customer outcomes.”
The partnership integrates XCover, Cover Genius’ global insurance distribution platform, into Zip’s alternative payment platform for a seamless customer experience that is designed for ultimate flexibility. The feature will give Zip Pay and Zip Money customers the ability to add protection to their Zip purchase, either during checkout or after checkout on select purchases, making it an affordable and timely alternative.
In an initial launch, customers will be offered transaction monitoring, where they can protect their recent purchases with a first-of-its-kind solution that leverages transaction data to provide protection that is tailored for relevance and renewed on an annual, recurring basis. Insurance options will also be available for Zip customers at checkout, with XCover’s Natural Language Processing to identify relevant items.
The solution was launched initially in Australia, meeting the needs of consumers worldwide, 61% of whom driven primarily by convenience are highly interested in transaction-based insurance offers from financial institutions, according to recent research from Momentive.ai and PYMNTS that Cover Genius commissioned .
Larry Diamond, Co-Founder and Global CEO at Zip, said: “We’re excited to collaborate with Cover Genius to offer Zip’s customers real-time, relevant offers for their online purchases. We understand our customers want flexibility and peace of mind when making major purchases, and Cover Genius’ embedded technology does exactly that in a seamless and convenient way. This partnership also perfectly aligns with our ethos of creating a financially fearless world. We put our customers at the center of everything we do, so it is important to us that we can arm them with the ability to shop confidently and protect the items that they care about in a way that is affordable and tailored to their purchases.”
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