Buy now pay later in New Zealand
This market has contracted faster than most retailers have noticed. Laybuy went into receivership in 2024 and its brand now belongs to Klarna. Zip announced its New Zealand exit on 17 July 2026. If your checkout still shows Laybuy or Zip badges, they are wrong.
The short answer
Afterpay and Klarna are the two options with a stable New Zealand presence as at 30 July 2026. Before adding any buy now pay later option, be clear that the merchant fee is several times a card fee, so it has to earn its place through genuinely incremental sales rather than by moving customers who would have paid by card anyway.
Which one suits you
- AfterpayRetail with average order values roughly between $50 and $600, and a younger customer base that recognises the brand.
- KlarnaRetailers who want the pay-in-four model and, in New Zealand, whatever recognition the acquired Laybuy brand still carries.
- No buy now pay later at allBusiness to business, high value considered purchases, or thin margins where a merchant fee of several times card cost cannot be absorbed.
Side by side
| Provider | NZ status | Owner | Notes |
|---|---|---|---|
| Afterpay | Available | Block, Inc. | Operated through the Australian entity. Merchant fees are not published for NZ. |
| Klarna | Available | Klarna | Acquired the Laybuy platform and relaunched the brand in April 2025. |
| Laybuy | Gone as an independent business | Brand now Klarna | Receivership 17 June 2024. laybuy.com/nz redirects to Klarna. |
| Zip | Winding down | Zip Co Limited | Exit announced 17 July 2026. Spend limits to zero on 16 August 2026, no new purchases from 17 August 2026. |
Two exits in two years, and what that says
Laybuy, a New Zealand founded and listed business, went into receivership on 17 June 2024 after failing to find a buyer, having struggled in both New Zealand and the United Kingdom. Klarna subsequently acquired its platform and brand and relaunched it in April 2025, with Laybuy's founder now leading Klarna's Australia and New Zealand operations. Zip then announced on 17 July 2026 that it would wind down its New Zealand operations following a strategic review, refocusing on Australia and the United States. Two departures in two years from a market this size is a signal about the economics rather than a coincidence.
The merchant cost nobody publishes
Afterpay's own New Zealand merchant page states only that merchants are charged a fixed fee plus a percentage, that it can differ between online and in-store, and that exact rates are set in individual merchant agreements. It does not publish a figure. Comparable published figures from other markets sit well above card processing, which is the important point for a retailer deciding whether to offer it. Treat any specific New Zealand percentage you see quoted online as unverified, because the provider itself declines to state one.
Settlement timing differs between online and in-store
Afterpay's published New Zealand terms describe two different flows. For online sales the remaining balance is paid to the merchant's nominated account typically up to five business days after the purchase date. For in-store sales Afterpay direct debits the amount from the merchant's nominated account, typically on the second day following the invoice date. That second arrangement is worth understanding before you agree to it, because the cash movement runs the opposite direction from what most retailers assume.
How to decide
- Work out your average order value. Buy now pay later earns its fee mainly in the range where a purchase is discretionary but not trivial, roughly $50 to $600 in retail.
- Ask whether it will generate incremental sales or simply move existing customers off a cheaper payment method. If it is the latter, you are paying several times card cost for nothing.
- Get the merchant agreement rate in writing before committing, because it is not published anywhere.
- Check settlement direction and timing, particularly for any in-store component.
- Audit your checkout and marketing for dead brands. Laybuy badges are now simply wrong, and Zip badges will be within weeks.
Common questions
Not for much longer. Zip announced on 17 July 2026 that it is winding down its New Zealand operations. Customer spend limits reduce to zero on 16 August 2026 and no new purchases can be made from 17 August 2026. Existing repayment schedules continue unaffected.
Sources
Comparisons change. Everything above was checked against these sources on the review date shown, and time-sensitive facts are dated in the text.
- Afterpay merchant fees, New Zealand. Afterpay.
- Zip exits New Zealand buy now pay later market. RNZ, 17 July 2026.
- Laybuy receivership notice. New Zealand Gazette, 17 June 2024.
- Laybuy receivership information. Deloitte New Zealand.
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