Larry Diamond Interview, page-29

Whilst I agree with your thinking and I don't like the convenience fee I get why there is one. By the sounds of it, it is something that Sezzle was looking into too. Potentially as they have a need to scale these fees may be introduced?

Also, I try to think of it from an Americans perspective. They would pay for convenience, they tip for every meal and it's sort of a part of their everyday life paying for convenience. That's why zip is still growing even with the introduction of it. People can tap and zip anywhere without having to be partnered. If you can't get a CC because of age or whatever and pass zips credit checks then this is convenient option that people would be willing to pay for. But I agree it goes against their mission statement as no one is going to use it everyday with a $1 fee. Using the average transactions in a day being 1.3 per person that's 39 transactions/month or $156/month and $1872/year. That exceeds the $753.8/year which isn't feasible.

If they truly want to be the first payment choice everywhere and EVERYDAY they need to drop the convenience fee or reduce transaction costs to facilitate the every day aspect. Currently they have nailed the everywhere functionality, which will be further enhanced once the physical cards are distributed.

Zip should have introduced the physical card sooner as apply pay in America is quite low penetration. As this increases so should the TTV.