Zip operates under the constraints of The Australian Credit...

Zip operates under the constraints of The Australian Credit Licence, and the National Consumer Credit Protection act (2009) Afterpay differs here, and doesn't have these credentials

What you're saying is correct, but Afterpay has some advantages in how it handles credit over Zip, for certain users. As you say, it does no credit checks, which for a lot of people, reduces the barrier to entry. Perhaps more like signing up for a PayPal account. Presumably, PayPal doesn't do credit checks on you. This means everyone pretty much can have an account if they want.

While putting people on a credit system without checks sounds crazy, they do have a very tight "back end". If you haven't made payment for your previous balances, you can't buy anything new through afterpay. And if you miss the minimum payment, you're permanently banned from the service. So no credit check upfront, but plenty of safety features built in.

Zip has a lot more flexibility though. Longer payback periods. The option to use Zip Money for larger amounts. I don't see that as a field Afterpay is going into. So while there's a crossover between the two services, as see them as distinct enough to need both.