$2 PARTY, page-8891

I think that customers tend to use one type of payment primarily - but maybe I'm wrong about that. Some customers use credit cards primarily for all their spending, some use debit cards, some use BNPL etc.

So I believe the true high quality customers use BNPL for the vast majority (if not all) of their expenditure.

If we focus solely on the US, there are 3.8 million customers that on average spent a total of $278 USD across 2.2 transactions during the recent January to March quarter. There isn't really data available for me to analyse this further unfortunately, but if we take the Pareto Principle I suspect 20% of the customers are responsible for 80% of the spending. This would mean 760k customers were responsible for $846.8m in spending and 6.72m tranasctions. That means each of those customers spends $1,114 across 8.8 transactions over that 3 month period.

Obviously its all speculation, but those numbers seem more realastic to me - I don't think it would be difficult at all for a regular BNPL user to spend $1,114 in 3 months - which is approx $86 per week. If anything, that weekly expenditure on BNPL still seems low to me personally.

What are your thoughts regarding the above?

Regarding the customer numbers (500k per quarter etc), I'm not entirely sure when they switched gears, but I believe at that point in time they were still focusing on growth. Once they knuckled down and decided to focus on sustainable profitable growth, they tightened their approvals, kicked off people with bad debts etc. It's entirely possible that if they opened up the flood gates again they start getting 500k new customers per quarter again - who knows! I also think their previous customer numbers were a bit dubious, and active customer numbers is a much better metric - or better yet, monthly recurring users is a better metric. They may have had promotions running at the time to bring on a bunch of new customers that only used the platform a handful of times - not sure regarding that sorry.