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Zip has released an insights report on the spending habits of its Australian customers in the second half of FY26, highlighting stronger use of its payment products for household bills and other everyday costs.
Insurance and utilities recorded the fastest growth among essential categories, with spending up 26% year on year. Customers used Zip for costs including energy, telecommunications and recurring subscriptions such as streaming platforms.
Health and education spending rose 15% over the same period, with dental care, IVF and schooling among the main contributors. The trend was particularly noticeable among customers aged 30 and over.
Household services were another growth area, with spending increasing 13% year on year. Solar installation and home maintenance were among the fastest-growing segments, especially for customers aged 30 to 50.
Outside household essentials, tech and electronics transaction volume climbed 50% year on year, driven in part by increased spending on gaming platforms.
The report also showed broader customer activity on the platform during FY26. Spend per customer increased 15.4%, while transactions per customer rose 16.7%, suggesting users were turning to Zip across a wider range of purchases.
Consumer priorities
The findings provide a snapshot of how Australian consumers are allocating spending as cost pressures continue to shape household budgets. Rather than focusing only on discretionary retail, the data suggests more customers are using deferred payment and credit products for recurring expenses and larger practical purchases.
That shift was most evident in categories linked to home management. Energy bills, insurance, communications services and maintenance all featured among the growth areas, alongside health and education, which can involve significant one-off or periodic costs.
Age-based patterns also emerged. Older customers were more active in health and education, while those aged 30 to 50 were more prominent in household services such as solar installation and home improvement.
Zip linked some of the broader growth in activity to Zip Plus, its flexible credit product for everyday spending and larger purchases, reflecting demand for alternatives to traditional credit cards.
The report also noted the use of artificial intelligence in shopping decisions. Recent Zip research found that 36% of its Australian customers use AI to support shopping decisions, chiefly to research and compare options before making purchases.
Zip operates in Australia, New Zealand and the United States, offering point-of-sale credit and digital payment services to consumers and merchants. The latest report focuses on Australian customer behaviour during the six months from January to June in FY26.
The company also provided context for the findings.
"Australian consumers remained resilient in the second half of FY26, but ongoing cost-of-living pressures meant they continued to seek greater value and be thoughtful about where their money went. We saw our customers balancing essential household costs with the products and experiences that matter to them. Across the six months, we saw customers using Zip across more parts of their everyday life, from utilities, health, insurance and groceries, to areas such as solar, home improvement and wellness. Engagement with Zip Plus - our no-to-low interest flexible credit option for everyday spending and larger purchases - underpinned growth, pointing to demand for flexible alternatives to traditional credit cards. AI is also beginning to influence the path to purchase, with recent research finding that over a third of our Australian customers (36%) use it to support shopping decisions, primarily to research and compare options. We also saw differences across generations, reflecting how spending priorities shift as customers move through different stages of life. What stands out is the breadth of how Australians are using Zip. Whether it's managing a regular household expense or planning for a bigger purchase, customers are looking for value, flexibility and control over how and when they pay," said Soraya Alali, Chief Executive Officer, ANZ, Zip.