As the lending laws have tightened it is now very difficult to obtain credit cards and people are driven into the arms of high priced alternatives and the line of least resistance, represented by BNPL, while the RBA sees the high buried costs as both inflationary and unfair. The RBA understands that BNPL is a necessary part of a functioning society but it does not want the poor and disadvantaged bearing the high cost of it. Other more diversified providers may have alternative streams of revenue and lower funding costs, but ZIPs troubles are both having to charge high fees and its high costs of funding, which are looking less likely to come down, at the same time there is a danger that arrears can rise very rapidly. It is going to get harder as time goes by.
ZIP Price at posting:
$3.00 Sentiment: None Disclosure: Not Held
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