Zip to Shut Down Pay in 4 Service in New Zealand, Spend Limits Dropping to Zero in August

Buy-now-pay-later provider Zip has confirmed it is withdrawing from the New Zealand market, notifying customers that its Pay in 4 product will be discontinued next month.

In letters sent to account holders this week, Zip said it had made "the difficult decision" to exit New Zealand entirely, ending the Pay in 4 service that let shoppers split purchases into four instalments.

Spend limits cut to zero from mid-August

According to the notice, issued under Section 23 of the Credit Contracts and Consumer Finance Act 2003, customers' Spend Limits will be reduced to $0.00 effective 11:59pm NZST on 16 August 2026. From 17 August, account holders will no longer be able to make new purchases through the service.

Existing repayments unaffected

Zip was at pains to stress that the change applies only to new spending, not to money already owed. The company confirmed the shutdown will not alter:

• amounts customers currently owe under existing Payment Schedules;
• the dates or amounts of any scheduled payments; or
• any other terms of customers' agreements with Zip.

Customers with outstanding balances will still be required to make payments on the dates already set out in their account dashboards. Zip said users wishing to clear their balances ahead of schedule can make early repayments by logging into their accounts, and that once a balance is paid in full, the company "may close" the associated Zip Pay in 4 account.

What it means for shoppers

The move effectively ends Zip's instalment-payment offering in New Zealand, joining a broader wave of consolidation in the buy-now-pay-later sector as providers reassess smaller international markets. Existing Zip Pay in 4 customers do not need to take any immediate action but should ensure they continue meeting scheduled repayments to avoid falling into arrears, even after new purchases are no longer possible.

Zip customers with questions about their account or repayment schedule are advised to log into their Zip dashboard directly for full details.