Yet the facts (on interest rates and ZIP's business) to date say otherwise.
ZIP down-rampers like yourself have been crying foul on interest rate rises since the market woke up to them in late 2021. Some of us shorted BNPL's before Powell even uttered the fatal "transitory" on inflation in April 2021, knowing higher interest rates were coming.
I love that your whacky down ramping mate asks your opinion on interest rates as if you are some sage to which you incorrectly reply "Zip paying ever increasing interest rates". No. Tekvest. Now I appreciate you know better than everyone else in the market, but lets refute your comment with a little look at the US yield curve:
ZIP certainly continuing to pay high interest rates in the short term as inflation continues to fall, but slowly falling - thankfully the yield curve has changed to move away from all the the finance media clowns calling drastically lower interest rates for late 2023 / early 2024 as they were at the beginning of 2023 as they realise interest rates are staying high, but no, not "ever increasing rates" as you claim.
It has been an awful time with rates, and in fact been the fastest interest rate rise in history already:
And now lets look what ZIP did in the year with the fastest interest rate rises in history March 22 - March 23, that have now plateaued:
Hang on? They lowered bad debts in the US (and elsewhere) during a time when the US Fed raised interest rates at record pace? But the makes a mockery of the arguments you and others on here have been making for a year now on here, unsuccessfully, that higher interest rates would kill ZIP?
Surely the business must have suffered then? No, wrong again:
ZIP's Q3 FY23 RESULTS UPDATE (across the period of these record interest rate rises) showed ZIP improved its business:
● Group quarterly revenue of $182.1m (up 15% YoY).
● Transaction volume for the quarter of $2.2b (up 9% YoY).
● Transaction numbers for the quarter of 20.3m (up 12% YoY).
● Cash Transaction Margin for the core business improved to 2.8% for the quarter (up from 2.5% in Q3 FY22)
● Revenue margin for the core business improved to 8.3% (vs 7.9% in Q3 FY22).
Keep flinging the interest rate rises threats to business talk Tekvest. We've seen the fastest rate rises in history and ZIP not only coped, it improved its business. Its killing everyday debt ridden, but 'solvent' Australian Mums and Dads who rely ever more on BNPL's.
(20min delay)