Ann: Zip and Sezzle Terminate the Merger Agreement, page-80

Zip cannot possibly survive.

Their gross transaction margin was ~ 7 percent from which you have to deduct cost of funds and bank and data charges which reduced it to circa 5 percent.

With increasing interest rates and new competitors offering merchants BNPL for no more than the normal interchange fee you will see Merchants demanding a fee reduction or just dropping Zip altogether from transaction margins.

Bad debt was running at 55 percent of income so that 5 percent becomes a little over 2 percent.

Since I did those figures the cost of funds has gone up and more competitors have entered the market.

i would guess the next update will show nett transaction margin of Zero or even minus after deducting bad debts.

The global economy is getting worse leading to reduced spending and larger defaults.

But let's be generous and say they achieve nett margins of 1 percent.

They had $300 million in Opex which they say has been reduced by $30 million ( excluding one off costs )

Those one off costs and the $16 million wasted on Sezzle will negate those savings this year.

So on a nett transaction margin of 1 percent in order to break even they need $30 Billion in TTV to break even after OPEX

Closing divisions and applications means TTV is not going to grow and they are just delaying inevitable insolvency.