ASX: ZIP Upcoming Aug 20 Report – Is the Cost of Living Squeeze the Ultimate BNPL Catalyst?
Zip drops their full-year results this Thursday the 20th, and I’m curious where everyone's head is at.
My theory: The cost-of-living squeeze in Aus and the US isn't a headwind—it's actually a major driver for BNPL right now. People aren't just using it for discretionary stuff like clothes and tech anymore; they're actively using it to manage their everyday cash flow and cover essentials. Because the US market is so massive for them, this could mean a serious bump in transaction volume.
The catch: Bad debts. Are consumers just creatively smoothing out their cash flow, or are they genuinely tapped out? If it’s the latter, defaults will spike.
I’ll be watching three things Thursday:
US Volume: Did it actually jump?
Bad Debts: Can they keep defaults under control despite the macro pressure?
Margins: Are they actually converting this volume into real cash?
What do you reckon? Does the squeeze push Zip's transaction volumes up, or will consumer defaults wipe out the gains? Anyone holding through Thursday?
Let’s hear it!