I don't know enough about the US model particulars to be fair -...

I don't know enough about the US model particulars to be fair - but no, if I was charged $4 for every transaction I wouldn't use it for everything. But if I was struggling financially and I could buy a new $1000 fridge on it and only pay $4 and pay it off over a couple months with no interest then I'd do that for sure.

But I have signed up for Zip Pay in Australia a couple months ago to get a better understanding of the Zip product as an investor, and I have enjoyed using that. I want them to build up their rewards program to make it more enticing, but I can see the appeal for people that might be struggling financially because it allows them to spread it out without getting slogged with heaps of interest.

Getting a credit card is super dangerous for people that are bad financially in my opinion - they often have much higher credit limits (e.g. $6,000) and then you are never assessed again essentially, and the interest you can rack up on that is crazy.

I love the fee-waiver payment structure with Zip Pay that ensures I never pay any fees. And I really like the ability to easily generate a single use card to use for online shopping - gives me a lot of peace of mind from a fraud perspective when buying from sites I'm not super familiar with.

I personally prefer credit cards for my personal situation because I collect Qantas points, and because the Zip Pay limit they gave me was only $350, but I can see how it can be a good option for people in a weaker financial position.