And BNPL is relevant in the comparisons. Especially when you factor in a little thing called ' Merchant Fee's ' And this is also why the Company has made those direct indirect comparisons as well. I say ' Indirect ' because they didn't exactly say their model was ' Directly ' the same......just that their ' Merchant Fee's ' were cheaper. And that's because they are cheaper.
And they are not just about providing a ' Hand Held ' POS EFTPOS unit at a monthly ' fee '
PLUS a transaction's fee like the example put forward with Tyro. This mob as we know is a ' Bank ' ....or claims to be one , and therefore would be subject to additional ' Prudential ' requirements on their lending book and customer interactions. Their terminal's though are offered under
THREE separate packages with the BEST prices being under what they refer to as the ' Special Offer ' which is 1.1 % . But you have to ADD the $29 per month on $20,000 or less in transactions - so that would bring it to 1.245 right ... So with CRO , they are potentially targeting more that this with their active accounts , and so it definitely looks like Tyro have TWO other packages referred to as ' Simple ' , and ' Cost Plus ' ......so I wonder if those are actually MORE expensive than their ' Special ' offer.......
Then there is ZIP who claim they are cheaper with their ' Merchant ' charges than Afterpay with 15 cents per transaction PLUS Merchant fees of between 2 - 4% as against Afterpay with 30 cents per transaction PLUS 4 - 6% .
There is also PayPal who in Australia have a 2.6% + 30 cents ' Fee ' on Invoices with most transactions attracting a 2.9 % + 30 cents per transactions and a ' Virtual Terminal ' rate of 3.6% + 30 cents per transaction with their CARD rates at 1.95% whereas a lot of the Card Based transaction can vary anywhere from point 6 % up to this 1.95% with these mob's. And that is I in part believe they have to charge higher on their Merchant charges versus the higher ' volume ' consumer transaction's side of the business. One ' offsets ' the other.
At the end of the day though .....who is going to argue with PayPal.....but of course CRO is NOT specifically targeting the ' Consumer ' end of the market , and they pretty much say so themselves with highlighting the fact that B2B transactions are some 25 times larger than those in the Consumer BNPL space.
We all could go on all day about what's driving Splitit and Sezzle's growth in market share and their share prices just as we can continue to make comparison's as to why ZIP acquired Quadpay for over A $403 million which saw ZIP increase it's total customers of 2 million by 1.5 million Quadpay customers.
And of course this compares to Afterpay's 5 million.......so we can go on and on in regards the comparisons , but the bottom line is - That not only do these ' acquisitions ' boost their consumer customer numbers , they also more importantly increase their Merchant numbers ......like with ZIP who are now on and estimated number of 26,000 after the Quadpay acquisition. This would then compare to CRO who most likely are sitting somewhere around 24,000 - 25,000 Merchant's from the previous 21,000 stated as far back to the announcements in June this year.
And it is these sorts of increases in Customer and Merchant numbers which hold the obvious key to the continued growth in this industry - And you only have to look at what Afterpay outlayed in their circa A$82.3 million acquisition of the European outfit Pegantis who were touted to have just
1,400 active Merchants and 150,000 customers. Does this in turn make the ZIP / Quadpay at 10 times more customers look cheap or expensive in terms of a ' Bolt On ' increase to Afterpay's Clearpay 1 million customers..... ....
And while , the jury is well and truly still out on the answer's to that one ......I'll just say that it definitely makes CRO / Appstablishment's numbers look very very cheap indeed.......
(20min delay)