Ann: Zip partners with Facebook, page-4

I'd like to repost what I have written yesterday as it seems rather relevant.


High margin is good, no doubt about that.
But sooner or later BNPL market will be saturated with competitors and margin will inadvertently go down. It will become a chicken game.

One point I should add in favor of Z1P in this strategy as opposed to other BNPL is that by allowing low margin but widespread purchases, it is capturing the market like no other BNPL did.

Think of Facebook, the reason FB market cap exponentially grew back in its heyday was because it had access to people's private data.
Yes, the data.

Data is $$$$

Let's take @murdochVet 's example again.
Previously, Z1P only knew 12.5% of murdoch's spending pattern. Which is not enough data to form a digital model of murdoch.
Now that Z1P knows almost all of murdoch's spending pattern, with help of AI analysis, Z1P is able to create an exact model of murdoch and match him to similar versions of him in the database.

Now Z1P can make targeted promotions to a similar type of buyers to suggest an item that he/she may favor yet did not know about. This will reduce the marketing fee dramatically as a marketing fee spent on the targeted audience has a much likely success than targeting mass.
This is exactly what Amazon is doing when they recommend a product to you.
Also, they can sell the data to other businesses (with identities of individuals obviously masked).

So on a vast scale of things, Z1P is becoming more than BNPL. It is becoming Facebook and Amazon.

This may sound far-fetched to some, but with enough data, this is certainly possible and I'm sure management had plans like this when they went on this route.