My main response is to yzwboy but can I just say in response to...

My main response is to yzwboy but can I just say in response to some of the other comments I really regret mentioning Afterpay. Why does it have to be a battle. There is plenty of room for both and there is plenty of reason for customers to use both zip and Afterpay.

Most people will likely end up using both products. Afterpay when they are waiting for payday and zip when they want to do the christmas shopping or during a promotion or to get a large interest free period for a bigger purchase at harvery norman or something.

Oh and worth mentioning I went to the dentist today and what did I see. A sign for zip! I never even thought about this before but in a place like that Afterpay isnt really going to cut it as the limit is too low but someone that has just had their free invisalign scan that has vowed never to get a credit card might see that sign and be tempted to use zip. I fully understand how convenient this looks for my zip bandwagon but i thought it was interesting as i never expected anything like that in a dentist

"how do you know that ZIP gets more of their revenue from the customer fees not the merchant? If it is true, then it is going in the opposite direction as Afterpay because afterpay definitely promotes the idea of getting their revenue from the merchant rather than the customer fees. And i'm definitely on APT side on this one."


You might think afterpay slugging the merchant for all the fees is best. This model is good initially if they have a product no one else is offering and can draw in a lot of revenue from new customers but once more people use and more merchants offer zip i feel like the merchants will likely offer both but i do think there will begin to have cases where they only offer zip. Only very specific ones like their profit margin being so small they cannot afford to offer afterpay or in the unique situation i had today where the cost of most things in the store are over $1000.

Afterpay fees are 30 cents plus 4-6%. Zip is 15 cents pluts 2-4% (I'm assuming high volume would get the lower end and low volume the higher end)

So with that in mind as a customer doing small purchases im going to want to use Afterpay. But as a merchant I'm only going to want to use afterpay as long as the revenue it brings outweighs the reduced profit margin per sale. I wouldn't encourage my customers to use afterpay. So with that in mind it makes sense to offer both but id probably rather have a bigger sign for zip as a merchant.

"what's stopping competitors from doing the same thing, everything is digital, I know this isn't particularly hard to implement. Credit Card was dealing with security issues for years and they were thriving fine, you can lock your card, you can set limit, you can even get notifications on spending to your phone, this is a rather weak point."

Yes credit cards can do all that and if you look into it theres no great advantage over a physical credit card and there isnt anything stopping competitors. but the main competitor is the banks and banks are landlocked and have much bigger overheads and even if they made some kind of digital payment service through the bank with one use cards i can bet you they will cost more and be harder to sign up with. People dont want to deal with banks to put it simply.

"Apple pay has been there for ages, you can link your card to it years ago and tap with it, I don't know why people talk about tap & zip like it's a game changer, it's not new but it definitely is attracting more people to use tap and pay on their phone, which is a plus for ZIP, but there is a deal with visa on this one so they probably cut some money off from ZIP, maybe this is the reason why APT is not doing it atm."

As you just said. its not new but now more people are using it. Taking something that already exists and doing it slightly better or marketing it better is sometimes all that needs to happen. Not everything needs to be a great innovation to be successful. I wouldnt be surprised if zip gets almost nothing from the merchant from tap and pay but as 61% of their revenue is from the customer they dont really have to and its also free advertising and gets the merchant extra customers with only the standard visa card rate.

Afterpay wont partner with a card provider because they wont make any money unless the customer is late on their payments.

Zip is basically a Credit card disguised as a BNPL provider. but people don't want credit cards and they don't want to deal with banks so this is the Gen Y/Z of credit its flashy its new and its getting bigger. They can also compete overseas and i wouldnt be surprised if they implement a zipmoney feature to quadpay or just rebrand to zip US.

Zip is also safeguarded if any laws pass allowing the merchant to charge an extra fee to use BNPL (like how they could charge higher to use amex) this would hurt zip but cripple afterpay.

And now i just look like another Zip pusher. If i could go back in time and know what i know now id have 50/50 stake in afterpay and zip. Afterpay is the first out of the blocks and may always have the lead but there is room for 2 and i believe zip will be in that spot with a lot more room for the price to go up