The news: Zip will offer Pay in 2, a two-part installment offer paid over two weeks for US consumers, per a press release.

This offering expands on Zip's Pay in 4 model, which spreads payments out over six weeks.

Why this matters: Consumer buy now, pay later (BNPL) use has splintered. 

• Some consumers turn to alternative credit to finance large purchases—think home repairs, appliance replacements—that they would be unable to pay off on a monthly credit card bill, seeing the benefit of escaping revolving debt. 
• Another segment of consumers are using BNPL for essentials: Early users of Pay in 2 indicated that “everyday needs like groceries and bills” would be a central use case for Pay in 2, per internal Zip data.  

The latter segment of BNPL users can’t always qualify for traditional lines of credit but need or want more flexibility to buy basic needs. Affirm is following suit by targeting renters in need of assistance.

Demand for financing essential purchases with BNPL likely will be strong: The overwhelming majority (88%) of US households are stressed about grocery prices, per a July 2025 AP-NORC Center for Public Affairs Research survey. 

Implications for payment providers: As the cost of living crisis deepens, more consumers who are boxed out from credit card access will be looking for alternatives. 

Expanding POS integrations at major retailers like grocery stores can help find these consumers at their moment of need, as can expanding awareness of BNPL-enabled debit cards through targeted marketing outreach.