Zip Expands U.S. Installment Lending Through Strategic Partnership with Column N.A.

Zip Co has secured a second banking partnership in the United States, tapping nationally chartered bank Column N.A. to support its unsecured installment lending products. For fintech professionals, this move signals a maturation of the Buy Now, Pay Later (BNPL) sector as major players seek to diversify funding sources and harden their operational infrastructure against market volatility.

What was announced

Zip Co (ASX: ZIP) has officially integrated Column N.A. as a bank partner for its unsecured U.S. installment lending products. This represents the company’s second banking partnership in the region, a strategic move designed to broaden its financial foundations beyond a single point of failure. By partnering with a nationally chartered and federally regulated institution, Zip aims to achieve greater funding cost efficiencies and enhance its operational resilience as it scales its American operations.

The partnership specifically targets Zip’s suite of digital financial services, which provide point-of-sale credit and payment services to millions of customers. Column N.A. will provide the underlying banking infrastructure necessary to power these lending products. This expansion of the bank partnership model reflects the significant scale Zip has reached in the U.S. market, where it connects a global network of tens of thousands of merchants with consumers seeking transparent credit options. The integration of a nationally chartered partner allows Zip to navigate the complex U.S. regulatory landscape more effectively while supporting its next phase of growth in the unsecured lending space. By diversifying its banking relationships, Zip is positioning its funding platform to remain robust as it expands its reach to new customers across the United States.

"As Zip continues to grow strongly, maintaining a strong and diversified funding platform is key to delivering for our customers,"

Rory Herriman, President and Interim CEO at Zip US

The companies involved

Zip Co Limited is a digital financial services firm headquartered in Australia but with a significant footprint in the United States. Listed on the Australian Securities Exchange (ASX: ZIP), the company has established itself as a major player in the global BNPL market, focusing on people-centered products that offer alternatives to traditional credit cards. It operates a network that connects millions of users with tens of thousands of merchants, providing access to digital payment services and flexible credit at the point of sale.

Column N.A., a Member FDIC, is a nationally chartered bank that distinguishes itself by providing the regulated financial infrastructure specifically for technology companies. Founded in 2019 by Plaid co-founder William Hockey, Column operates as a "banking backbone" for the industry. Unlike traditional banks that may struggle with the technical requirements of modern fintechs, Column was built to provide a full-stack solution. Its client roster includes some of the most prominent names in the sector, such as Brex, Bilt, Wise, and Mercury. By owning its charter and building its own core technology, Column allows its partners to bypass many of the legacy hurdles typically associated with bank-fintech integrations.

What FF News has reported before

FF News has tracked the evolution of Column’s infrastructure, recently highlighting how Column Rebuilds Financial Infrastructure with Full-Stack Card Issuing and Stablecoin Integration. This focus on deep technical integration is a recurring theme for the bank’s partners; for instance, FF News covered how Mercury Launches AI-Native Spend Management with Agent Cards and Intelligent Budgets, utilizing the type of robust banking rails that Column provides. These developments underscore a broader trend in the industry toward more sophisticated, embedded financial services that require the stability of a nationally chartered partner. Additionally, the flexible payment sector remains active, as seen when Laters.com Raises $1.5M Seed Round to Expand Flexible Travel Payments Beyond Cards.

What this means

This partnership highlights a critical shift in the BNPL landscape: the transition from "growth at all costs" to "structural durability." By adding Column as a second partner, Zip is insulating itself from the concentration risk that has plagued other fintechs reliant on a single sponsor bank. It also puts pressure on traditional regional banks that have historically dominated the sponsor banking space but lack the developer-first infrastructure Column offers. The move raises questions about whether other major BNPL providers will be forced to follow suit and diversify their banking stacks to satisfy regulators and lower their cost of capital in a high-interest-rate environment.