Afterpay vs Zip Pay – Which is best for your ecommerce store?

Ecommerce sites are looking to simplify how you pay everywhere and save every day by offering fast, fair and seamless payment solutions online and in-store.

One of the most powerful tools available to you as an ecommerce store owner is to allow your customers to make a purchase without up-front payment.

Australians are already very fond of in-store ‘lay-buy’, and the new generation of online payment gateways Zip Pay and Afterpay have brought this concept to the online world – allowing the customer to ‘buy now, pay later’.

Sounds good? Well, now it’s just matter of deciding which gateway is best for your ecommerce store. Let’s look at the key details:


In this area, both payment gateways are compatible with many of the large ecommerce platforms. Here is a listing of compatible platforms – listed directly from each gateway:

Zip Pay

Shopify, WooCommerce, Neto, Magento, Big Commerce, ZenCart, eCorner, Jetpack, Paydock, Prestashop, eStar, osCommerce, Everybuy Digital.


Shopify, WooCommerce, Neto, Magento, Big Commerce, Infinity, Island Pacific, Futura 4 Retail.

Also note that as an Australian web developer, we can further assist with integration into other platforms not listed above.


Neither of the two platforms charges any interest to the customer – instead, all transaction fees are paid directly by the merchant.

In this category Zip Pay is comfortably in front; it charges a smaller transaction fee as well as a lower commission. The commission range varies based on transaction volume (much like PayPal).

Zip Pay

  • 15c per transaction + commission (between 2-4% of sale price)
  • Example transaction of $100AUD:
    • A maximum fee of $4.15.
    • A minimum fee of $2.15.


  • 30c per transaction + commission (between 4-6% of sale price)
  • Example transaction of $100AUD:
    • A maximum fee of $6.30.
    • A minimum fee of $4.30.

Payment terms

Both gateways require either a Visa or Mastercard and bill the customer via direct debit.

The great news for merchants is that once the transaction is completed, you’ll never need to worry about chasing customers for payment – this is handled directly by the payment gateway themselves.

In regards to repayment options, it largely comes down to a preference between simplicity and flexibility.

Afterpay has set payment terms (4 equal fortnightly payments) whereas Zip Pay allows the customer to choose their own payment terms (weekly, fortnightly or even monthly) and also allows customers to change these terms as they go along.

Zip Pay

  • No deposit
  • Flexible repayments, minimum $40 per month
  • $5 ‘late fee’ charged for a missed payment


  • ¼ of the sale price as a deposit
  • 4 equal payments over 8 weeks (including deposit)
  • $10 ‘late fee’ charged for a missed payment, plus extra $7 if not paid for another 7 days

In our opinion, whilst both gateways are easy to use and offer a great customer experience, Zip Pay may come out slightly in front for most users needs. Naturally, having lower merchant fees is a big plus, but we also like the flexibility of their payment terms. Currently, Afterpay has more recognition and market share, but Zip Pay is very quickly expanding its presence in the online world – and their value proposition to both merchants and customers is hard to ignore.

Need more information?

iFactory is an award-winning digital design and ecommerce company based in Brisbane. We are committed to delivering advanced web solutions combining website design, eCommerce, digital marketing, social media and platform integration. Contact us for more information about taking your ecommerce store to the next level.

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