Whats wrong with zips credit checks if they get a higher % of...

Whats wrong with zips credit checks if they get a
higher % of bad debts than afterpay??



Since many on this forum a constantly saying zip is undervalued when compared with its peers I put together a comparison of zips bad debts vs a local competitor (APT, you may have heard of them)

Ive heard it many times here that zip has a lower
bad debt % than APT "because they do credit checks
and APT dont", but nobody backs it up with comparative numbers.

zip have traditionally showen bad debts as a % of receivables whilst APT have bad debts as a % of TTV.

the two different methods are obviously not comparably.
Why?? because of the time for loans to be paid varies so much.

example
zip AU bad debt % is 1.82% due to (long term payment options)
zip group excluding AU bad debt % is 13.24% due to (short term payments plans (mostly))



So here is a better comparison of bad debt % putting both companies using TTV as the denominator.

zip global
bad debts = 74.5M
TTV = 5.8B

zips bad debt % = 1.28%

APT global
bad debts = 195.1M
TTV = 21.1B

APT bad debt % = 0.92%


seems like APT repayment capability check is superior to zips credit checks.