Ann: Completion of Security Purchase Plan, page-51

Hi @mondyinvest, appreciate the response.

I understand that BNPL customers aren't necessarily loyal to any one provider, but couldn't the same be said of credit card customers? And I think we can agree that the credit card business is highly profitable.

The way I see it, imagine Zip gets 100 new customers, and 90 are good customers and 10 are bad customers, then the company will cut off the 10 bad customers and be left with 90 good customers. Then when they get another 100 new customers they will again need to cut off the bad customers. The number of good customers (i.e. the vast majority) will continue to increase over time, and the bad customers won't because they will consistently be removed from the service. I think the vast vast majority of customers pay their debts on Zip, and those customers will be repeat customers and be the basis for Zip's profitabilty - especially if they add additional revenue streams to capitalise on the customer base.

In regards to the fuel and grocery payments, I suspect most people that have credit cards would pay for those things with their credit card. I simply see BNPL as similar to credit cards, and so I'm not sure why they can't become equally profitable over time. Once the BNPL platforms evolve to include things like savings accounts, share trading accounts etc I think they will become quite similar to banks and similarly profitable.