Sell now or Pay Later, page-122

You really just don't get it do you.

i have been highlighting for months on APT threads that existing credit providers are not just going to stand idly by and let these disrupters take their business.

What all of these BNPL players do is nothing special, no subscription model resulting in a guaranteed income stream, no proprietary technology, and heavily reliant on borrowings from the very financial institutions they are seeking to disrupt.

The NAB card will just be the first of all the major Banks offerings both here and in the UK and USA.

All of the BNPL players are unlikely to have their warehouse facilities renewed on expiry unless at exorbitant rates putting pressure on margins from increased costs.

Margins will be squeezed at a Merchant level by the Paypal and Major Banks offering so there 4 percent suddenly becomes 2 % and operating costs and bad debts exceed this....therefore the entire business model is unviable.

The present incumbents will simply price them out of business and probably return to exorbitant credit card rates thereafter.

They are playing the long game and will do whatever it takes to disrupt the disrupters.

The Banks etc have to much at stake not to take this agressive strategy.

They also have the distinct advantage of not having to establish a merchant network as it's already there.

Zip will find it next to impossible to add new merchants and will experience significant dilution to their existing networks TTV