Cover Genius, an award-winning insurtech for embedded insurance, has entered a strategic partnership with global “buy now, pay later” (BNPL) leader Zip Co (Zip).
The partnership aims to boost Zip's BNPL offering by protecting purchases and allowing customers to add protection to their recent purchases. Specifically, Zip will integrate XCover – Cover Genius's global insurance distribution platform – into its alternative payment platform for a seamless customer experience, enabling Zip Pay and Zip Money customers to protect their Zip purchases during checkout or after checkout on select purchases.
In the initial launch, Zip will offer transaction monitoring to customers to protect their recent purchases via a first-of-its-kind solution leveraging transaction data to offer protection tailored for relevance and renewed annually.
The solution, to be launched initially in Australia, aims to meet consumer needs worldwide, 61% of whom are highly interested in transaction-based insurance offerings from financial institutions, according to recent research from Momentive.ai and PYMNTS that Cover Genius commissioned.
Angus McDonald, co-founder and CEO of Cover Genius, said the insurtech is thrilled to partner with Zip to protect the growing number of BNPL customers worldwide, especially with the global BNPL market expected to reach $680 billion by 2025.
“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,” McDonald said.
Larry Diamond, co-Founder and global CEO at Zip, commented: “We're excited to collaborate with Cover Genius to offer Zip's customers real-time, relevant offers for their online purchases. We know that our customers want flexibility and peace of mind when making major purchases, and Cover Genius's 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 centre of everything we do, so it's 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.”