'Buy now, pay later' comes to childcare

More than 10,000 childcare centres across Australia and New Zealand will allow parents to use ‘buy now, pay later’ software to cover fees through a deal struck between Zip Co and Xplor Technologies.

Zip Co, which has been chaired by prominent Western Australian Diane Smith-Gander since February, is one of the largest fintech companies to offer these services in Australia, with market cap of about $4 billion.

Xplor Technologies, meanwhile, offers software-as-a-service to small businesses in the childcare, fitness and personal services sectors, and has grown significantly in recent months on the back of acquisitions in the US and New Zealand.

Newly announced services will be available from November.

Floris de Kort, chief executive of Xplor Technologies, said the company is committed to continually evolving its software solutions to meet emerging consumer needs.

“The partnership with Zip will enhance our offering for childcare providers and families, allowing early learning centres to diversify their revenue streams, and in turn, allow families to benefit from the flexibility of this new option,” he said.

Colin Baines, Zip’s commercial director, heralded the deal as a first of its kind in Australia.

“Teaming up with Xplor Technologies, we will use our financial solution to empower and offer flexibility for both families and childcare providers,” he said.

Shares in Zip were trading at $7 at 12pm AEDT.