GameStop/Zip Partnership Lets Gamers Play Now and Pay Later

Zip says it has become the chief installment payments partner for video game retailer GameStop.

“We are so pleased to become the primary Buy Now, Pay Later partner of GameStop, a business that has been at the forefront of offering shoppers an array of customer-first options for gaming purchases, from payment options to trade-in policies,” Joe Heck, Zip U.S. CEO, said in a Monday (March 3) news release.

“Nearly 84% of Zip’s U.S. customers shop for gaming and accessories at GameStop, with many returning to Zip for repeat purchases,” he added. “Gaming is one of Zip’s most popular categories overall, making Zip an ideal partner for helping these shoppers responsibly purchase goods and services from one of the industry’s fan-favorites and top businesses.”

Zip, the release noted, has 6.3 million active customers and works with nearly 82,000 merchants in the U.S., Australia and New Zealand. GameStop, the company added, is a leader in the $100 billion video game sector.

The announcement comes as pay later plans continue to serve as a tool for managing day-to-day expenses for many consumers. Among people who live paycheck to paycheck, three quarters have turned to buy now, pay later (BNPL) plans within the past year.

“This trend is not limited to low-income households,” PYMNTS wrote on Monday. “Even consumers earning more than $100,000 annually are turning to installment plans, signaling that these options appeal across all financial levels.”

Consumers who have trouble paying bills were four times more likely to use these plans than those with more stable finances, according to the PYMNTS Intelligence eBook “10 Impact Statements: The 2024 Pay Later Report.”

This suggests pay later options are not just a financial lifeline, but also a preferred choice for many consumers who wish to stay on top of their budgets.

“While pay later plans are often a necessity for those facing financial hardships, they are also appealing to more financially secure individuals,” PYMNTS wrote. “According to the eBook, 18% of non-paycheck-to-paycheck consumers used these plans primarily for convenience, with 15% also seeking rewards.”

In addition, the desire for easy, budget-friendly payment options is affecting how consumers make large and small purchases. Many consumers, no matter their income level, used installment plans to streamline spending and preserve their cash reserves, seeing them as an effective way to handle spending without sacrificing immediate needs.