Cover Genius found a new path to an industry relationship last week.

A leading insurtech for embedded insurance and a 2020 Emerging 8 honoree announced a partnership with Zip, a global buy now, pay later (BNPL) player, to offer customers tailored protection embedded into the payment process and Zip’s wallet experience.

According to a news release, the partnership expands Zip’s BNPL offering by not only protecting purchases in the moment, but also allowing customers to add protection to their recent purchases.

“With the global BNPL market expected to reach $680 billion by 2025, we’re thrilled to partner with Zip to protect the growing number of worldwide BNPL customers,” Cover Genius co-founder and chief executive officer Angus McDonald said in the news release.

“Zip is a popular payment option and is uniquely positioned to protect their customers at point of sale but it also has a tremendously loyal and engaged customer base, meaning they’re able to further develop the relationship with embedded protection in their popular wallet, while also doing away with arcane multi-year products backed by traditional insurers who produce poor customer outcomes,” McDonald continued.

The partnership integrates XCover, Cover Genius’ global insurance distribution platform, into Zip’s alternative payment platform for a seamless customer experience that is designed for ultimate flexibility.

The feature will give Zip Pay and Zip Money customers the ability to add protection to their Zip purchase, either during checkout or after checkout on select purchases, making it an affordable and timely alternative.

In an initial launch, customers will be offered transaction monitoring, where they can protect their recent purchases — with a solution that leverages transaction data to offer protection that is tailored for relevance and renewed on an annual, recurring basis. Insurance options will also be available for Zip customers at checkout, with XCover’s Natural Language Processing utilized to identify relevant items.

“We’re excited to collaborate with Cover Genius to offer Zip’s customers real time, relevant offers for their online purchases,” said Larry Diamond, co-founder and global CEO at Zip. “We understand our customers want flexibility and peace of mind when making major purchases, and Cover Genius’ embedded technology does exactly that in a seamless and convenient way.”

“This partnership also perfectly aligns with our ethos of creating a financially fearless world. We put our customers at the center of everything we do, so it is important to us that we can arm them with the ability to shop confidently and protect the items that they care about in a way that is affordable and tailored to their purchases,” Diamond went on to say.

Through this partnership, Cover Genius has the potential to address Zip’s more than 11 million BNPL customers, giving them access to real time protection that’s embedded into their purchase journey. Amid the rapid growth of the fintech sector, there is a huge demand (up to 96% according to the survey) for banks, neobanks, wallets, accounting platforms, BNPLs and other fintechs to protect their customers in this way.

For more information visit, covergenius.com.