ZipMoney provides interest-free loans from $1,000 to $2,000 to purchase consumer products from its retail partners.
ZipMoney co-founder Larry Diamond said: “At Harvey Norman, it takes [a] 30-minute meeting with a sales rep and then you get a credit card. ZipMoney loans can be done on your phone in three minutes and there’s no credit card, it’s all virtual.”
According to a statement issued by the company, zipMoney intends to disrupt traditional lenders by providing digitally accessible and interest-free loans for a minimum of three months.
“We’ve designed the product to be extremely transparent, consumer-friendly and competitive […] You can have a viable business without resorting to predatory lending practices,” Mr Diamond said.