Zip, the Australian-based buy now, pay later provider, may offer an earned wage access service to further grow its U.S. business among cash-strapped consumers.

The company would launch the new service in the first half of 2027, if it decides to move forward, Rory Herriman, Zip’s U.S. chief technology and operations officer, said last week in an interview. The company hasn’t previously offered earned wage access services.

“We’re testing the market and listening to the customers about how they feel about this need and how does it fit within our overall offering,” Herriman said Aug. 31, expanding on comments Zip executives made last month during a call to report fiscal year 2026 income.

Zip reported net income, after tax, of AU$116 million for the 2026 fiscal year, a 46% increase from the prior year. About 76% of Zip’s AU$16.7 billion total transaction volume came from the U.S. That annual volume was a 27% increase over the prior year. The company is forecasting U.S. transaction volume to grow above 30% in fiscal 2027, which ends June 30 next year.

Zip faces significant U.S. competition from larger rivals Affirm Holdings, Block’s Afterpay and Klarna Group. While Zip’s revenue and operating margin for the fiscal year rose, its revenue margin – income as a percent of volume – slipped as the U.S. became a bigger contributor to volume.

Zip is winding down its New Zealand operations to focus on Australia and the U.S. It is also considering a stock listing in the U.S., to complement its Australian listing, the company said in the earnings release.

With respect to its EWA assessment, Zip is exploring both employer-based and direct-to-consumer EWA approaches, Herriman said. “Rather than just attempt to replicate what we all know is in the market, we're looking at how do we achieve product market fit for our customer given our portfolio of products, and does this thing make sense?” he said.

Almost half (49%) of Zip customers have used an earned wage access or cash-advance product, Zip U.S. CEO Joe Heck said on the company’s Aug. 20 quarterly earnings call with analysts.

“For many everyday Americans, the challenge is cash flow timing,” Heck said. “Most consumers are paid every two weeks, while bills like rent are generally due monthly. That mismatch in timing of income and expenses creates large opportunities beyond BNPL, particularly across bills, income smoothing and rent.”

Sydney-based Zip has 6.5 million customers, with 4.6 million of those in the U.S., according to its 2026 fiscal year investor presentation. However, the company says its addressable market is more than 100 million “low-to-middle income Americans that have been underestimated by traditional financial services providers,” according to Zip’s investor presentation.

Cash advance and earned wage access are “income smoothing” products that represent a $100 billion market opportunity, Zip said in the investor presentation. 

Zip is also exploring new products to address monthly rent payments – a $700 billion market, according to Zip data. About 60% of Zip customers are renters and about half of Americans who rent spend more than 30% of their income on rent payments, the company said in its presentation.

“These are products our customers already use, and we have a very strong level of trust with these customers, that we feel confident we can expand that relationship,” Heck said on the call.

U.S. consumers are increasingly moving away from revolving credit products “in terms of where they can get their needs met,” Herriman said. “That short-term installment style lending keeps consumers out of the credit cycle, and I think there's more comfort in that.”