Ann: Zip welcomes ASIC's Buy Now Pay Later Report, page-2

Nice report....

16 November 2020ZIP WELCOMES ASIC’S BUY NOW PAY LATER REPORTZip Co Limited (ASX: Z1P) (“Zip” or “the Company”) welcomed the release today of ASIC’s Report672 into the “Buy Now Pay Later” (BNPL) sector. Zip actively participated in the report’spreparation, providing ASIC with several rounds of internal data. This follows the release of Report600 from November 2018.Peter Gray, Zip’s Co-founder and Chief Operating Officer, said:“This is an important report from ASIC that shows the continued growth and popularity ofthe buy now pay later sector in Australia. It confirms the adoption of better ways to payby millions of mainstream Australians as they shift away from the broken credit cardmodel towards interest free alternatives with balances repaid in months not years. Wehave just been through the biggest economic shock for decades and the BNPL sector hasheld up extremely well, with the flight to online spend and very low levels of consumerhardship - a point recognised by the report.As the report confirms, there are different BNPL providers in Australia with differentbusiness models and different ways of engaging with consumers. Many of these modelsrely on late fees to make the economics work. Zip’s is clearly differentiated from thesebusiness models.Zip has invested significantly in our market leading proprietary credit decision capability,which is delivering better outcomes when compared to our peers or credit cards. We haveperformed credit and identity checks on every single applicant since inception, and wherecustomers connect their bank account, we can assess an individual's circumstancesunderstanding all their financial commitments.This means that only 1 in 100 Zip Pay customers are late each month, compared with thedata in the report that shows 1 in 5 customers across the broader BNPL industry havemissed a payment. The report also confirms that Zip makes less than 1% of its revenuefrom late fees, among the lowest of all BNPL providers - Zip does not rely on consumersfalling behind to drive its economics.Our industry is developing a Code of Practice which we believe will lift industry standards.Zip has been a key player in developing this code and ASIC’s report will inform the Code’sfurther development.However, while we believe the Code is a very good start, Zip will continue to implement itsown higher standards, particularly around customer suitability. This is in line with ourvalues of transparency and responsibility, which continues to deliver superior consumeroutcomes.”