For orders between $35 and $99.99, the fee is $4 For orders...

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coppergaz

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21/06/24

17:26

Post #: 74431053
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Originally posted by nakervirus: ↑

I agree I probably should look closer into the US model - I have tried briefly before but couldn't find any definitive information. Perhaps you could point me in the right direction?

I found this, "Actual installment fees vary and can range from $0 to $7.50 depending on the purchase price and Zip product used. Actual amount of fee for your purchase will be reflected in checkout."

However, I think it is difficulty to truly understand the US model for a few reasons:
1. The US demographic is extremely different to here in Australia - different consumer behaviours, attitudes etc. Plus vastly different systems regarding credit scores, wealth inequality, education/financial literacy etc.
2. The US is still in its infancy in terms of growth and products - at the moment the revenue is continuing to increase steadily and profitably which I like a lot. That's not to say they can't adapt later on and introduce new products with different fee structures or change fee structures as required - and I think that is one of the big perks of a fintech company like Zip, they can move a lot faster and adapt compared to banks which are slow to change.

It may be the case that US customers don't mind paying a small extra fee with each purchase - particularly when they are already used to the final amount increasing at checkout due to things like sales tax, and tipping etc.

There are so many customers in the US at the moment to get access to that I don't think the product has to be perfect at this stage - and I trust that Cynthia will adapt the product if and when required.

At the moment my core focus is on the increasing revenues - whatever fees/structure they need to keep that increasing for now is fine with me.

Also I could see it being the case that a low SES person who is struggling and needs to buy a new pair of shoes for work, or a new uniform or a new phone or something is okay with paying an extra $4 approx to get the product now and pay it off over the following 6 weeks. The $4 may just be the price of accessing that convenience etc. And if they don't have access to something like a credit card then they don't have too many other options anyway.

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For orders between $35 and $99.99, the fee is $4

For orders between $100 and $199.99, the fee is $5

For orders $200 and above, the fee is $6

That’s the total fee amount the customer pays, split between the four repayments.

For the $7.50 fee stated on the website is for the Pay in 8 product that is currently in pilot.

ZIP Price at posting: $1.36 Sentiment: Sell Disclosure: Not Held
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