It worked well for Afterpay. At this stage rapid market share is more important, and it only $1000.
I could argue the massive customer base is worth a'lot more (data & pricing power to potential new retailers) than some more defaults.
Another issue is I had friends with good credit score get rejected over $1000. Silly, and they have not bothered to call Zip, too much hassle.
That is a lost customer.
Now for higher loans (Zip Money) I do recommend keeping the credit check.
Anyone with connections with the CEO, please pass the msg.
Zip should remove credit checks
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