Well there hasn't been an article written on this yet. Also I only just found out about it because someone posted a 40+ minute podcast of which the rumour was mentioned for all of 1 minute.
So I can't imagine it's seeped into the share price even one bit to be honest. Not that I'm saying it ever will though, because it is a rumour after all.
Anyway. If we're going to discuss this, then it has to stay within the realm of the reality Adam Dawes painted as true if this rumour comes about.
He said the rumour is Amazon have a deal with Zip which makes them a global payments option on the Amazon website.
So if we're talking about which BNPL best suits this role. It's 100% not Affirm. Yes they're great in America and I'm sure Amazon will allow both of them and Zip together in the US. However, they're just not outside America, so enough said.
Klarna is logical and honestly a good choice too. I would have thought Afterpay was as well.
I can't speak to what Amazon would do or why. If Zip was chosen, then the most glaringly obvious reason for it would be Zip's lower merchant fees.
Amazon definitely have the power to influence this whole sector. Perhaps they even believe in their dominance so strongly, that they are going to make an attempt to shift the current primarily accepted merchant/customer fee ratios that Afterpay has championed, and push them further in favour of the merchant.
I believe they could achieve that, and that customers will just go along with it because honestly this kind of thing flies under the radar for the most part.
We on this forum talk about this stuff, but regular people don't. So if Amazon has a BNPL option on it's website, then it will be used by the masses and get into the psyche of the general public through sheer force.
If Amazon can get 2% fees as a merchant, compared to 4-6%, then that's a hell of an incentive to choose Zip.
That's my bull case for the rumour at least.
Sure there are reasons why Klarna is currently a better choice in Europe and the US in terms of coverage. It's just, will that matter if Amazon partners with Zip? Doubt it. Zip would instantly have all the coverage it ever desired and with no effort whatsoever.
All it would have to do is maintain and upgrade debt facilities. Of which it has absolutely no problem with doing because it's credit rating for that type of debt is as solid as treasury bonds.
The only thing I'm really concerned about right now is determining Adam Dawes track record with rumours in general and how his predictions regarding them have panned out in the past. That's the only thing that matters unless anymore news comes out.
Z1P Price at posting:
$6.24 Sentiment: Hold Disclosure: Held
(20min delay)