Larry Diamond Interview, page-32

Yeah all good points. The tipping was more so to demonstrate that it isn't that far fetched for Americans to pay for a service or pay for the convenience of using a service. At the end of the day BNPL is a form of service. But I acknowledge that point and for the record I wouldn't pay it. I was annoyed last month that I was charged $7.95 even though my payment schedule is setup to be automatic... that's like 7 shares...

I agree it doesn't make too much sense to have different models across the globe. If the Aus model is profitable as they say why not focus on what is working and use that globally? One reason may be the funding facilities interest rates are higher globally, meaning longer duration lending comes at higher costs to zip, especially if not paid on time or at all. That plays into why they have lower limits in the US. Over time zips limit increased to $2000 which was only last year but that may have been facilitated by the lower funding costs in AUS.

Do you think the model would work better if the limit was increased but the convenience fee was still there? My understanding of the convenience fee is it passes the cost of transaction onto the consumer. It doesn't facilitate their mission but

The other thing is, Zip business should be rolled out to the US. There was an interview which demonstrated that B2B BNPL was a higher margin product. If the pay in 4 model is saturated in the US (as it is) then they should try and adopt differentiation strategies to stand out from the crowd. Using a pay in 4 model that is available everywhere is a big positive but the cost for this convenience is too high for an every day spend. However, they are going to be bringing rewards to the US in an effort to increase transactions per month.

If you were running zip what would you do to turn this around?