is zebit legit or scam? reviews. Pros and cons

An Overview of Zebit

Zebit is an Australian-based buy now, pay later (BNPL) provider that allows customers to split purchases into multiple interest-free installments. The company was founded in 2019 and has processed over $2 billion in transaction value to date.

Some key things to know about Zebit include:

  • Zebit operates mainly in Australia, New Zealand and the UK. They work with thousands of online and physical merchants across these regions.

  • When using Zebit, customers can split purchases between $30-$30,000 AUD into multiples installments ranging from 2-12 payments. There is no interest charged as long as payments are made on time.

  • Zebit uses soft credit checks that do not impact credit scores when customers sign up. Hard credit checks are only done if a customer’s application is declined based on affordability.

  • Customers can manage their Zebit accounts and make installment payments through the Zebit mobile app. Payments are processed through direct debit from linked bank accounts or credit/debit cards.

  • Zebit aims to offer a simpler and more transparent BNPL experience compared to other providers. They do not charge late fees but do report missed/late payments to credit bureaus.

Now that we have a basic overview of what Zebit is and how it works, let’s dive deeper into analyzing whether or not Zebit can be considered a legitimate BNPL provider.

Analyzing the Legitimacy of Zebit

When assessing any financial company or service, one of the most important factors to consider is whether or not it operates legally and provides consumers with appropriate protections. With Zebit, there are a few aspects that signify its legitimacy:

Australian Financial Services License

Zebit holds an Australian Financial Services License (AFSL), which is regulated by the Australian Securities and Investments Commission (ASIC). This license allows Zebit to provide credit services to customers in accordance with Australian financial laws and regulations. ASIC is a government body that protects consumers, so having this license demonstrates Zebit complies with basic standards.

Financial Reporting

As a private company, Zebit is not publicly traded on the stock exchange. However, it does publish financial reports on its website annually to showcase transparency around revenue, funding amounts, and business performance indicators. Reviewing a company’s financial records is one way for outsiders to evaluate its legitimacy and stability.

Data Security Standards

Zebit complies with the Payment Card Industry Data Security Standard (PCI DSS) to protect customers’ sensitive financial information. PCI DSS is a stringent international data security protocol mandated for any organization that handles credit/debit card details. Complying with PCI DSS shows Zebit takes privacy and security seriously from a technical standpoint.

Positive Reviews

Looking through independent reviews on sites like and Trustpilot, most Zebit users seem satisfied overall with their experience. While no provider will be perfect, the lack of widespread complaints or controversies is a good sign pointing to legitimacy. Customers also tend to rate Zebit higher than some competitors in areas like transparency and support responsiveness.


Some less established or predatory BNPL companies have faced lawsuits or run into controversies regarding deceptive marketing practices, ambiguous terms, etc. However, in Zebit’s 3+ years of operation so far there do not appear to be any major public lawsuits, investigations or scandals reported. This clean track record enhances its credibility.

Funding from Reputable Investors

Zebit has raised over $80 million AUD in funding from recognizable venture capital firms like Blackbird Ventures, Index Ventures and QED Investors. These investors complete rigorous due diligence before investing, so their financial backing lends legitimacy to Zebit as a growing BNPL player.

Based on these factors, Zebit establishes itself as a legitimate provider operating with proper licensing, standards, reviews and a track record free of major issues so far. However, legitimacy is an ongoing exercise – so let’s also explore some considerations users may have:

Potential Downsides to Consider

No company or service is perfect, so it’s important to be aware of any potential downsides or risks when deciding to use Zebit:

Credit Reporting Policies

While Zebit claims to only do hard credit checks on declined applications, their credit reporting policies could still impact users. Even soft credit checks and missed/late payments reported may ding credit scores minimally over time.

Lack of Late Fees

Not charging late fees is touted as more consumer-friendly, but it also removes disincentive for some customers to miss payments. If regular defaults occur, Zebit’s ability to withstand losses long-term is uncertain.

International Availability

Zebit presently operates mainly in Australia, NZ and UK – but the BNPL market leaders have a much bigger global footprint in key markets like the US, Canada and Europe as well. For international shoppers, other providers may offer more choice.

Fewer Payment Plans

Compared to brands like Afterpay offering 6- and 8-week payment plans, Zebit’s flexibility of 2-12 payments is more limited. This reduces its appeal for certain large purchases that require more installments.

Potential Over-Reliance

Like any form of credit access, over-using BNPL too frequently without discretion could enable unhealthy spending habits that lead to financial difficulties down the road for some consumers.

Changing Regulatory Environment

Governments globally are ramping up regulations for the fast-growing BNPL sector regarding responsible lending, advertising and consumer protections. Changes in rules may impact Zebit’s business model or costs.

Balancing Pros and Cons

When evaluating whether Zebit seems like a legitimately safe and reliable BNPL provider to trust, it’s important to weigh both the pros and cons carefully:

On the pro side, Zebit establishes credibility through solid financial licensing, positive reviews so far, reputable funding, and an absence of controversies. However, some downsides centre around its still-limited scale, policies on credit impacts and late fees, plus uncertainty on how regulatory shifts may influence operations over the longer term.

Overall, Zebit ranks solidly against other BNPL options in terms of legitimacy based on licensing and regulatory compliance achieved to date. But it also still has room left to grow its international footprint and fine-tune product features as the industry matures.

Like any financial service, responsible use is key—over-reliance on BNPL credit access could become problematic for some. But Zebit itself does not exhibit apparent red flags that would deem it as an outright illegitimate or risky company just yet either based on current research.

For shoppers simply seeking an interest-free payment option from a credible licensed provider, Zebit seems like a reasonable choice so long as its cons are understood. Just as with any financial transaction, doing thorough due diligence and maintaining control over spending habits is always recommended.

Final Verdict – Is Zebit Legit?

After reviewing Zebit’s business model, track record, licensing, funding, policies and both pros and cons – there are no glaring warning signs that would indicate Zebit is an illegitimate or unethical provider at this stage.

It complies with basic regulations, standards, and transparency that authenticate it as a real company committed to operating within the bounds of the law. Reviews and lack of controversies also suggest most customers have found their Zebit experiences satisfactory to date without major complaints.

While no service is perfect, and downsides like potential over-reliance exist – Zebit itself demonstrates appropriate measures that establish its legitimacy and safety for consumers so far based on research. Of course, its practices and regulations will need continuous re-evaluation over time as both the company and fintech industry evolves.

Overall, the conclusion is that – yes – Zebit can reasonably be considered a legitimate buy now, pay later platform for customers seeking interest-free payment plans, provided its potential limitations are also understood. Competitively, it fares solidly compared to other BNPL providers globally in maintaining proper licensing and standards from authorities.

Responsible financial decisions remain key no matter the company used. But at present, there are no clear red flags warning against the legitimacy or integrity of Zebit from the research perspective. Its solid fundamentals, reviews and regulatory compliance support it as a credible BNPL option – despite some room left for future scale and optimization as well.

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