Responding to @Tekvest's last response to me:You say "Whether...

Responding to @Tekvest's last response to me:

You say "Whether interest rates are high or low it doesn't matter"

That is factually incorrect. Interest rates are absolutely central to BNPL costs and profitability. The financing costs of Zip have sky rocketed along with rising interest rates. One of the main drivers of Zip's rising expenses has been interest rates. Zip's interest expense (that is, interest related to customer receivables) surged from $73.8M for the year to June 30th 2022, to $159.6M for the year to 30th June 2023. That's an increase of 116%.

You also say "the more BNPL activity you have the greater the losses you incur". I take it this statement refers to net bad debts. If so, this statement is again factually incorrect.

Zip increased transaction volumes by 8.1% YoY and revenue by 16.1% yet was able to cut their net bad debts from $257.7M in 2022 to $170.2M in 2023. A reduction of 33% YoY. So to say interest rates don't matter and net bad debts will always rise with BNPL activity is factually wrong and/or is a misunderstanding of the business reporting.