Qantas and Zip join forces for BNPL flights, but is it a good option?

man sitting at airport waiting for qantas flight paid for with buy now pay later

As international travel returns to normal, it has been announced that Qantas and Zip Co. have partnered, offering customers the option to pay for international and domestic Qantas flights through the Buy Now Pay Later (BNPL) platform.

In addition to a new way to pay for your holiday, you can also now earn Qantas Points on your eligible everyday shopping through Zip Rewards. New and existing Zip customers can link their Qantas Frequent Flyer account in the Zip app.

Specifically, Zip and Qantas frequent flyer customers can earn:

  • 3,000 points when they sign up and link their Zip account and complete their first transaction.
  • 1 point for every $3 spent on eligible flights on qantas.com with Zip.
  • 500 points each time they reach their Zip Rewards goal in the Zip app.

ANZ managing director, Cynthia Scott says the company’s research shows that Buy Now, Pay Later users are more likely to travel in the next 12 months compared to non-users.

“This means our alliance with Qantas is incredible news for our 3.1 million customers,”she says. “In fact, more than 75 per cent of Zip customers intend on travelling in the next 12 months. We put our customers at the centre of everything that we do, so it means a lot to us that we can give Zip users the option to pay for their next trip with Zip.”

Now that you can BNPL your way around the world, does that mean you should?

Like most payment methods, BNPL comes with surcharges when purchasing a flight, but how does it compare with the other options?

According to the Qantas schedule of fees, Zip - the only BNPL platform offered - has the highest surcharge of all available payment options at 1.5% per ticket.

Qantas payment surcharges

Payment typePayment fee
Debit and prepaid Mastercards, including Qantas Money0.30%
Debit and prepaid Visa cards0.44%
Mastercard credit card0.89%
Visa credit card1.01%
American Express0.89%
Diners Club1.01%
PayPal0.69%
Zip1.5%
Other debit and credit cards e.g. JCB, Discover, non-Qantas issued UATP cards1.01%

Although it’s a small amount, surcharges can add up if you’re purchasing a high-priced flight, especially if you’re buying multiple tickets. Zip also charges a $7.95 monthly fee, which is an additional fee to consider.

For example, consider if you purchase two $500 tickets on BNPL for a family holiday that you cannot currently afford: if it takes you a year to pay the balance off completely, you will pay the $1000, plus a $15 surcharge and the $95.40 in monthly Zip fees - adding over $100 in additional fees.

If instead of Zip Pay you utilised your Zip Money account, then the potential fees would be higher. While Zip Pay instalments are interest-free, Zip money instalments are free for the first three months and then revert to a 19.9% p.a. interest rate. So, if you pay your balance in 12 months, you could pay around $60 in interest, in addition to the $15 surcharge and the $95.40 in monthly Zip fees.

While this is still likely less than or comparable to what you might pay in interest and surcharges on a Qantas Points rewards credit card, there can be added benefits to paying with a credit card that you can’t get through BNPL, such as purchase protection and included travel insurance.

If you’re interested in learning more about Buy Now Pay Later head over to our BNPL hub. And if you want to check out more ways to earn Qantas Points, have a look at our Frequent Flyer Rewards Credit Card page for comparisons and guides.

Buy Now Pay Later
  • Weekly, fortnightly or monthly instalment options
  • $7.95 monthly account fee (waived if you pay your balance in full each month)
  • Choice between two accounts limits to match your spending needs

With more than 2 million customers across Australia and New Zealand, Zip* is one Buy Now Pay Later that packs a punch. First off, customers have the option to choose their account limit that best suits their spending needs. Zip Pay is available for purchases from $350 and under $1,000, while Zip Money is for spending over $1,000. And not only do customers have the flexibility to use Zip both in-store and online, but there’s also the opportunity to choose your repayment frequency as either weekly, fortnightly or monthly. It also comes with a tap and pay feature.