Cover Genius has added Buy Now, Pay Later (BNPL) provider Zip Co to the growing list of firms deploying its XCover embedded insurance platform.
The solution launches initially in Australia and integrates XCover into Zip’s platform, allowing Zip customers the ability to add protection to their purchase.
Founded in Australia in 2013, Zip offers payment services in 13 markets around the world, with a presence in Australia, Canada, Czech Republic, India, Mexico, New Zealand, the Philippines, Poland, Saudi Arabia, South Africa, UAE, the UK and US.
Cover Genius CEO and co-founder Angus McDonald says the agreement gives the potential to address Zip’s 11 million-plus customers as the global BNPL market is expected to reach $US680 billion ($984 billion) by 2025.
“We’re thrilled to partner with Zip to protect the growing number of worldwide BNPL customers,” he said. “Zip is a popular payment option and is uniquely positioned to protect their customers at point of sale … doing away with arcane multi-year products backed by traditional insurers who produce poor customer outcomes.”
Transaction data will be used to offer tailored protection, to be renewed on an annual, recurring basis. Insurance options will be available for Zip customers at checkout, with XCover identifying relevant items.
Co-founded in 2014 by Mr McDonald and CIO Chris Bayley in Sydney, Cover Genius is now licensed in more than 60 countries. XCover is available at Amazon, eBay, Wayfair, Descartes, ShipRush and other global retailers.
Since launching its XCover Go app for small-to-medium-sized businesses in June, it has partnered with RMS Cloud on cover for holiday park residents, led a $6 million funding round for India’s Ensuredit, and bought UK insurtech Booking Protect.