Forage and Zip Unite to Provide Relief Amid Government Shutdown Effects

As the uncertainty surrounding government funding and SNAP benefits in November looms, the fintech companies Forage and Zip have announced a critical collaboration aimed at supporting Americans facing potential food insecurity. This initiative will enable eligible recipients to access a temporary, no-cost installment payment plan, which is designed to allow continued access to groceries during these challenging times.

Zip, a prominent digital financial services firm, will waive transaction fees for eligible users in their app who require assistance purchasing groceries. To benefit from this initiative, customers will need to fill out a straightforward form in the Zip application, enabling them to access this essential relief without any financial burden. Forage’s technology and extensive network, which includes relationships with numerous grocery stores that accept Electronic Benefits Transfer (EBT) payments, will bolster this effort.

Together, the companies are mobilizing a national coalition of merchants and retail platforms prepared to take action should there be any delays in the federal benefits issuance. The overarching goal is to keep food supplies available for households while federal policymakers finalize essential budgetary solutions.

"Our primary concern during these unforeseen circumstances is ensuring that the 42 million Americans who depend on SNAP benefits can continue to put food on the table," stated Ofek Lavian, the co-founder and CEO of Forage. This sentiment highlights Forage's proactive approach; although they cannot control federal funding, they are committed to addressing the immediate needs of vulnerable households. Lavian emphasized the company's readiness to collaborate with grocery stores and government entities to devise innovative, temporary solutions that aid families in need, referring to a range of potential strategies, from state-issued cards to alternative payment channels.

Joe Heck, the US CEO of Zip, echoed the urgency of the situation. He remarked, "It is in our DNA to respond to our customers' needs in meaningful ways. We are thankful that, through Forage's infrastructure and existing relationships, we can extend our support to more Americans as policymakers navigate these complex issues."

Under this plan, repayments will use standard payment methods that never involve EBT funds, and the program will include comprehensive disclosures to ensure transparency. Importantly, this initiative is set to activate only if the SNAP benefits are delayed in November, marking a crucial moment for both organizations to step in and provide assistance.

About Forage

Forage specializes in payment infrastructure that facilitates government benefits payments, with a keen focus on enabling retailers to accept SNAP EBT transactions. With 42 million Americans relying on government assistance to purchase groceries, Forage plays a pivotal role in powering payments for communities in need. They hold the unique distinction of being the only USDA-approved third-party payment processor (TPP), offering retailers superior software alongside dedicated service. This capability allows complex government payment solutions to be processed efficiently, ensuring that retailers are guided through the USDA authorization process.

About Zip

Zip Co limited (ACN 139 546 428) is an ASX-listed digital financial services entity that provides innovative, customer-friendly financial products. Operating in key markets such as Australia, New Zealand, and the United States, Zip offers point-of-sale credit and digital payment services, facilitating connections between millions of customers and a vast network of merchants. Founded in 2013, Zip is dedicated to providing fair, flexible, and transparent payment options, empowering customers to manage their finances effectively while supporting merchant growth.

This collaboration between Forage and Zip represents a crucial step in providing essential support during a time of instability, ensuring food remains accessible for those who need it most.