Thanks for sharing this,
@FreeFromStyle. I think you might want to reconsider the broader implications here. Cutting interest rates may sound like good news, but it’s not necessarily the fix all for ZIP or similar companies.
A rate cut could signal underlying economic weakness, something that directly impacts consumer sentiment and spending. ZIP’s US focused growth hinges on consumers with disposable income. If rates are being cut because economic growth is stagnating, that’s a direct headwind for their buy now pay later model. The consumer credit cycle isn’t in ZIP’s favour right now, and further rate cuts might only postpone bigger issues.
It’s not just about short term optimism; it’s about long term sustainability. A cut might soften the blow temporarily, but it won’t solve ZIP’s core profitability and cash flow concerns. Markets love to hype rate moves, but if ZIP keeps burning cash, no amount of monetary easing will save it.
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