The Bear Room, page-2919

I think there is a benefit for businesses from an online perspective - when a customer gets to checkout they can definitely generate a single use card and purchase that way. But I imagine having Zip as an option at checkout makes it a much smoother experience for the customer, which likely leads to greater sales conversions etc.

There might also be additional benefits like the business being advertised on Zip's app, pushing Zip specific promo codes/discounts/sales which provides an easy way to target a large number of customers.

There are probably other benefits as well that I'm sure Zip informs the businesses about. You see Zip advertised everywhere in Australia so clearly businesses see a benefit.

Also customers numbers are effectively stable - I think dropping implies a much bigger decrease. It's fairly stable at 6 million customers. Also, I imagine most of those customers don't use Zip very often - so there is plenty of opportunity to convert many of those users into monthly transacting users. The latest report shows that monthly users are increasing.

Also TTV in Australia did decrease for a period during a terrible macroeconomic environment and while Zip was tightening approvals etc, but TTV increased in the last quarter by 6.8%. I imagine this trend will continue particularly as the roll out of Zip Plus continues.

And this is all with no interest rate cuts! Imagine once the US and AUS start cutting rates - consumers will be under less pressure which means they can more easily pay off their loans (i.e. reduced bad debts), and consumers will have more discretionary spending and be less worried about the future (i.e. increased TTV and revenue for Zip), and funding costs will decrease for Zip (i.e. increased margin, less need to raise prices etc, more profits etc).