Zip’s U.S. CEO wants to reframe lending—not by expanding access to luxury, but by rebuilding trust at the checkout.
In a category crowded with product clones and overhyped narratives, Joseph Heck is bringing BNPL back to first principles. At Zip, where he recently stepped in as CEO of the U.S. business, the focus isn’t on fintech innovation for its own sake. It’s on rebuilding utility for the customers who need it most—and who are too often underserved by traditional models.
At Transact 2025, Heck offered a clear-eyed view of the category’s next chapter. Less about disruption, more about relevance. Not for everyone—but for millions of working Americans managing tight financial rhythms, uncertain income, and rising cost-of-living pressure.
Checkout Abandonment Isn’t Lack of Demand—It’s Lack of Flexibility
The conversation begins where many BNPL stories end: the moment a customer leaves their cart.
In Heck’s view, this isn’t a marketing problem or a loyalty issue. It’s a structural gap. Many of Zip’s customers are ready to transact—but without immediate liquidity or access to traditional credit, the purchase fails. That doesn’t mean intent is missing. It means optionality is.
Rather than chasing prestige retail or luxury categories, Zip is prioritizing high-frequency, needs-based spending—groceries, gas, household essentials. And in doing so, Heck believes they’re unlocking a conversion lever that’s been ignored in ecommerce: one grounded in empathy, not urgency.
Moving Beyond One-Size-Fits-All Pay Later Models
Heck is also challenging the rigidity of BNPL products. While “pay-in-4” has become the default industry structure, it doesn’t reflect the complexity of real consumer lives. Some buyers want shorter windows. Others need longer ones. What matters, he argues, is giving people the flexibility to match their payment plan to their circumstances—without falling into debt cycles.
That flexibility is becoming core to Zip’s roadmap: a mix of adjustable term lengths, transparent fee structures, and clear communication. For Heck, it’s about restoring control to the consumer, not reshuffling financial risk.
Personalization, Not Just AI
Asked about the role of AI in the business, Heck steers clear of buzzwords. Zip is using AI tactically—in support routing, back-end optimization, and experimentation with product recommendations. But what excites him more is the opportunity to reintroduce nuance into a category that’s often automated by default.
His background, which includes early experience at a credit union, shapes that view. Lending used to be about trust and context. Heck believes that feeling can scale—but not without thoughtful guardrails and transparency. Personalization should serve behavior, not just profit.
A Category That’s Matured—and a Company That’s Narrowing In
As the BNPL space cools from its hypergrowth years, Heck sees an opportunity to refocus. Rather than chasing horizontal expansion, Zip is choosing depth—serving a customer segment with clear, recurring need, and differentiating on usability rather than ubiquity.
The opportunity remains significant. In the U.S., BNPL still accounts for just 2% of payments—far behind markets like Australia or the Nordics. For Heck, this isn’t a land grab. It’s a trust race. And Zip only needs to outperform in the spaces that matter most.
That means cutting distractions, aligning teams, and measuring success in customer outcomes—not quarterly product launches.
A Leadership Model Built on Clarity
Heck’s style is pragmatic, grounded in clarity over noise. He’s focused on what he calls “alignment before action”—getting the team clear on who they serve, what they’re solving, and why it matters. That includes resisting the pressure to do everything at once.
As other players fragment or overextend, Zip’s U.S. strategy is pulling in the opposite direction: sharpened product, focused verticals, and stronger internal operating rhythms. The bet is simple: trust and usability will win long after novelty wears off.
And if Heck is right, BNPL’s future won’t be written by who raised the most—but by who understood their customer best.
Disclaimer: The above podcast episode was generated using AI based on an interview transcript. While the content remains true to the original conversation, the voices, tone, and delivery were synthesized and do not represent actual recordings of the speakers. This AI-generated format is intended to enhance accessibility and provide an alternative way to engage with the discussion.
🌟 Spotlight on Liberis
Don’t leave Vegas without sitting down with the team behind one of the most compelling embedded finance platforms in the industry.
With their Create Journey API, Liberis enables platforms to offer personalized, pre-approved funding options to their SMB customers—at scale, and with a single integration. They’re already powering embedded lending experiences for partners across e-commerce, accounting, and payments.
“We’re embedding lending where businesses already operate—and using GenAI to do it more intelligently.” – Nima Montazeri, Chief Product Officer, Liberis
— The Unofficially ETA Transact Team
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