Affirm has a heavy emphasis on term lending with interest as one...

Affirm has a heavy emphasis on term lending with interest as one of their drivers, in the absence of monthly fees and late fees, with rates up to 36%. Like ZIP they get a lot of income as commission from merchants, but their reliance on interest free BNPL is low. By comparison ZIP charges monthly fees and late fees, interest free, which some say puts a lid on customer revenue, particularly when regulations are introduced. In Australia ZIP is trying to move customers away from BNPL with the introduction of ZIP Plus, which issues a credit limit and an introductory rate of 12.95%, but being fully regulated under the Credit Act (BNPL is not), requires full credit assessment, so take up is lower and slower.