Larry Diamond Interview, page-31

hey @Bone1005

i appreciate your response. your thoughts here are constructive to what the zip fourm needs more of.

first id like to respond to the idea that Americans tip for convienence and say that Americans actually tip more for service they received in person. it may seem like im being argumentative but tipping is generally given for the service of a physical act that is done in person (generally)
waiters, bell hops, bar service, casino dealers, taxis ect

second is not every sector in the usa economy recieves tips as a general, but for the sectors that do, it is industry wide. the overall payments industry does not have convienence fees like zip does. zip is definitely a stand out in this area and i suspect this is one of the reasons the average usage of zip per customer stands at a low ~2X per year. (when you consider this vs APT at ~6X and then also consider zip can be used anywhere then the difference is even greater)

i agree some Americans wont think much of paying the fee especially if its only a couple of times per year but when a cheaper or free option is available my bet is they will choose it. even more so if they are a more regular user of bnpl. (i dont think zip really wants to aim for low usage *and low value of sales.)

the reason i mention low value of sales is, because id like to point out zip limits in the usa are extremely low when compared to aus. most aus users are around 1500 - 2000 but in the usa they seem to be around 300 - 800. i believe this to be by design to keep purchases smaller to gain a high ROI as such. one of the most common complaints with zip usa is not being able to get a limit increase.

next point id like to address is the cost of credit. you showed average cost at 753.80 for a CC vs a comparable 1872 for zip. its a good comparison and i welcome how you did this.
another view is the cost for credit. the average CC limit in usa is about 30k. whereas average zip limit seems to be 500. zip is costing twice as much for 1/60 of the available limit. which in my opinion is extraordinary expensive cost of credit per dollar for zip being 120X of a CC.
(this cost isnt reflective of usage, but shows how expensive zip is and shows how limited it is in comparison).

i would much rather see the aus model adopted in the usa to give zip a point of difference to other bnpl and allows quality users the option to pay nothing at all in fees.

imo