not entirely true in my opinion.
when you say industry; im guessing that you’re probably referring to a small minority of stand alone BNPL players who failed to realise that BNPL isn’t proprietary, it’s a process that has become (what has always been around), laybuy targeted at millennials (only technologically advanced). A process which has now become intrenched and integrated into almost all financial institutions eco systems, thus diluting market share, creating downward pressures on warehousing and cost of capital, and as evidently seen, increased bad debts and smaller margins.
the cream rises to the top - perfectly executed business plans; like Afterpay and even as far as to say Klarna and Affirm.
zip has unfortunately fallen into the same realm as a splitit, iou, laybuy, sezzle etc - those without market share, no meaning exclusivity, no large revenue generating verticals, and basically no differentiating factors.
there are a good number of factors for this which has been discussed to no end.
I see the only survivors being the major players with huge fund and insto interest and who have shown to have continued explosive growth, eye watering facilities via securitisation which presents a less capital intensive form
of warehousing.
Block, Klarna, Affirm, PayPal and others
zips alarm bells rang nearly 12 months ago when they couldn’t attract any significant US investment. Smart ones questioned why they came back with only BoA taking a larger increase and raising via a convertible note deal issued to Europe, Asian and Australian parties. Possibly a part of the reason for this, was the looming 3 slowed consecutive quarters that zip would see, post Re brand of quadpay to zip, in addition to the extensive M&A journey they went on across the globe with micro/start ups?
my guess is they will be studying this in years to come.
two very similar businesses
two very similar offerings
two very similar beginnings (zip started 1 year before afterpay)
two very similar market opportunities
and yet two very completely different outcomes.
all in my own opinion, do your own research
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