Quadpay: The Revolutionary BNPL Service
Shopping has come a long way since the days of carrying large sums of cash to make purchases. Nowadays, people use credit and debit cards for transactions, but an increasingly popular option is BNPL or Buy Now, Pay Later, services.
These allow people to make purchases and pay for them in installments over time, making it easier to manage their finances. Quadpay is a leading BNPL service that has revolutionized the way people shop.
In this article, we will provide an overview of Quadpay, discuss its services, and explore how it makes money. What is Quadpay?
Quadpay is a BNPL service that allows shoppers to make purchases and pay for them in four interest-free installments over a six-week period. Quadpay partners with thousands of merchants to offer this service to their customers.
Quadpay offers a convenient payment method, allowing shoppers to buy now and pay later without the need for a credit check or upfront fees. Shoppers can create a Quadpay account in just a few minutes, link their Visa card, and start shopping.
Quadpay is a safe and secure way for shoppers to make purchases without the risk of overextending themselves financially. Company History:
Quadpay was founded in 2017 by Adam Ezra and Brad Lindenberg.
They saw an opportunity to disrupt the BNPL industry and compete with companies such as Afterpay and Klarna. Quadpay has since become a major player in the industry, with over 9 million customers and partnerships with over 15,000 merchants.
Quadpay’s founders saw an opportunity to offer BNPL services to a wider market and make it more accessible to shoppers who were previously unable to use similar services. How Quadpay Makes Money:
Quadpay generates revenue through several different streams.
The first is merchant fees, where Quadpay charges merchants a fee for each transaction made using their service. This fee varies and is negotiated between Quadpay and the merchant.
The second is convenience fees, where Quadpay charges shoppers a nominal fee for the convenience of using their service. The third revenue stream is late payment fees, where Quadpay charges shoppers who miss a payment or default on their payments.
These fees serve as a deterrent and incentivize shoppers to make their payments on time. The fourth revenue stream is interchange fees.
Quadpay earns a percentage of the transaction fee charged by Visa for each purchase made using Quadpay. Features of Quadpay:
One of the main features of Quadpay is its easy registration process.
Shoppers can create an account in just a few minutes and link their Visa card to start shopping. Quadpay’s Visa card integration sets it apart from its competitors, allowing for a seamless checkout process and faster payments.
The service is straightforward and there are no hidden fees or interest rates. Shoppers know exactly what they are paying upfront and can easily manage their payments through the Quadpay app.
Partnered Merchants:
Quadpay has partnered with thousands of merchants, including popular brands such as ASOS, Apple, Forever 21, Lululemon, Nike, Poshmark, VANS, and Walmart. These partnerships have enabled Quadpay to reach a wider audience and offer its BNPL service to more customers.
Quadpay Chrome Extension:
The Quadpay Chrome Extension is a new feature offered by the service, allowing shoppers to use Quadpay at any merchant that accepts Visa. This feature sets Quadpay apart from its competitors by offering a more versatile and flexible BNPL service.
Using the extension, shoppers can make payments on any website, not just those that partner with Quadpay. The Chrome Extension places Quadpay in direct competition with PayPal’s BNPL service, which offers a similar extension.
In conclusion, Quadpay is a leading BNPL service that offers shoppers a safe and convenient way to pay for their purchases in installments. Quadpay’s founders saw an opportunity to disrupt the industry and offer a more accessible service to a wider market.
Quadpay generates revenue through merchant fees, convenience fees, late payment fees, and interchange fees. Quadpay’s main features include a straightforward registration process, partnered merchants, and its new Chrome Extension.
Overall, Quadpay has changed the way people shop by making it easier and more manageable.
Quadpay Growth and Acquisition
Quadpay has been experiencing unprecedented growth in recent times, thanks in part to the pandemic. The BNPL service’s user base has grown exponentially, as more people have shifted towards shopping online to avoid the risks associated with in-person shopping.
Quadpay’s ease of use and affordable payment options have also contributed to its growth. Acquisition by Zip:
In September 2020, Quadpay was acquired by Zip Co Limited, an Australian fintech company, for $403 million.
The acquisition made Quadpay a wholly-owned subsidiary of Zip Co, with the founders and shareholders retaining a stake in the company. The acquisition has allowed Quadpay to more easily expand its services globally and leverage Zip’s extensive technology, experience, and resources to continue growing its user base.
Growth of Quadpay:
Quadpay’s growth continues to soar, with the pandemic fueling online sales and BNPL services’ popularity. Quadpay has capitalized on this trend by offering a shopping app where users can browse and purchase items with ease.
The Urge app has helped Quadpay reach a wider audience and increase user engagement. It features daily deals and personalized shopping recommendations that make online shopping more personalized and enjoyable.
Quadpay Rebranding to Zip:
As part of the acquisition, Quadpay underwent a rebranding, changing its name to Zip. The name change is part of Zip’s global brand strategy, with the aim of making it easier for users to recognize and understand its services.
The name change does not affect Quadpay’s operations, and users can still access their accounts and pay for purchases through the platform. Quadpay Revenue Streams:
Quadpay has multiple revenue streams that drive its growth and profitability.
These include:
Merchant fees:
Merchant fees are the primary source of revenue for Quadpay. The company charges merchants a fee for each transaction made through its platform.
The fee varies depending on the merchant’s agreement with Quadpay, with some merchants paying a percentage of the transaction, while others pay a flat fee. Quadpay’s fee structure is relatively affordable for merchants, which has helped attract more merchants to its platform.
Convenience fees:
Quadpay charges convenience fees to users who choose to use its platform to make payments. The fee is a small percentage of the total transaction amount and covers the cost of payment processing and employee salaries.
While some users find the convenience fees negligible, others consider them an unnecessary burden and choose to use other payment options for their purchases. Late payment fees:
Quadpay charges late payment fees to users who miss their bi-weekly payments or default on their payments.
The late payment penalty is relatively small and can be avoided by scheduling reminders or ensuring that payments are made on time. Users are prohibited from using Quadpay to make transactions if they have unpaid balances in their accounts.
Interchange fees:
Quadpay earns a percentage share of the interchange fee charged by Visa for each debit card transaction made through its platform. The interchange fee is a percentage of the transaction amount that Visa charges merchants for using its payment system.
Quadpay shares the fee with other service providers, such as banks and payment processors, and takes a percentage for itself. In conclusion, Quadpay’s growth has been largely driven by the pandemic and the increasing popularity of BNPL services.
The acquisition by Zip has allowed Quadpay to expand its services globally and leverage Zip’s extensive resources. The Urge shopping app has played a major role in driving user engagement and increasing revenue.
Quadpay’s revenue streams include merchant fees, convenience fees, late payment fees, and interchange fees. These revenue streams are critical to Quadpay’s success and continued growth in the BNPL industry.
In summary, Quadpay is a leading BNPL service that allows shoppers to make purchases and pay them in four interest-free installments. Quadpay was acquired by Zip, which has contributed to its unprecedented growth, especially during the pandemic.
Its revenue streams include merchant fees, convenience fees, late payment fees, and interchange fees. Quadpay’s features, such as the easy registration process and its new Chrome Extension, make it a popular choice among shoppers.
Quadpay’s growth and revenue stream highlight the importance of BNPL services in the e-commerce industry and the growing trend among consumers. The continued success of Quadpay signals a shift towards a new era of convenient and accessible payment methods.