Millennial's domain keeps flourishing
The AFR reported on ZipPay's results. The ‘buy now, pay later’ business processed A$500 million of sales last year (about a quarter of its direct competitor, Afterpay). We were able to distil some interesting numbers from the published figures. Zip’s revenue of around A$40 million tells us that fees charged to retailers (on average) are around 10%, once bad debts are factored in at about 2.6% of receivables. The business has been growing substantially and currently has over 700,000 customers and over 10,000 participating retailers. Millennials clearly love it and it puts the traditional credit card business under pressure.