Tap and Zip has more benefits than you may think, page-19

Looking at where their revenue is coming from, I believe they've crunched the numbers as to the benefit vs costs of having a tap and pay anywhere over the merchant fee gain from instore.

I can say for a fact that tap and zip won't have any back end to change that cost to the merchant fee. So, in essence, tap and zip will cannabilise instore merchant fees. Whilst this sounds concerning, if we look at their revenue breakdown, 38% comes from merchant fees. 25% of their merchant fee is from instore. So 25% of 38% becomes 9.5% of their revenue will be affected by the tap and zip overriding the merchant fees from their instore merchants.

If we take a middle ground of interchange fees ~.5% vs 4% means a loss of around 8.375% revenue. Keeping in mind, this is not accounting for the fact of increased transaction volumes via increased spending across all areas of spending. And this is purely based in Australia, so the reduced revenue from tap and zip will be even more insignificant, when accounting for global growth. And this doesn't take into account the possible increased revenue from increased account fees as people are having a higher account balance.

All in all, if we look at the pure numbers before taking to account potential increased revenue from other factors stated, it is a detractor. We will see how much of a detractor it will be with the quarterly.