Google pay, page-98

The main difference between Zip and credit card is Zip doesn’t not charge interest but a small flat fee. Users avoid the complexity of interest calculations.

You only pay $6 for up to $1000 amount owed for zip. For credit card, assuming interest is 23% per annum you pay around $19 for $1000 amount owed monthly. But the pain is even after you pay off the balance, the interest is still going for some time in the next payment cycle based on their calculations. It’s complex and confusing for most people to comprehend how much they will pay for a debt. You feel completely disempowered using a credit card because the company has the information you don’t know.

OnIy the contrary , Zip is transparent, easy to understand, and much cheaper. It’s completely manageable and people feel empowered and in control. In addition, you have up to 2 months to pay off the purchase before the fee, which is better than credit cards.

On a side note, afterpay charges way more than Zip if you cannot pay off your purchase in 2 month you pay $10 for an overdue and $7 after 7 days if it’s not paid off. It can add up really quickly like a credit card.

Zip offers the best value and flexibility of the three. Afterpay has their advantage in showing you each purchase payments but in Zip you pay them together. This is where Zip looks like a credit card. But in essence they are completely different.

Zip is a great product once you know how it works and it really aims on providing best values for customers.