10/11/2023 0 Comments Cheap stocks to buy now australiaYet profitability in the sector has been surprisingly rare, despite stellar growth in BNPL user numbers and transaction values. Which is bad for consumers, but potentially good for profits.Īfterpay, which listed on the Australian Securities Exchange in 2017, is now Australia’s 15th most valuable public company by capitalisation. The Australian Securities and Investments Commission, which regulates financial services, has expressed concern about BNPL services being more likely to create “ unhealthy spending behaviours”. What's the difference between credit and debt? How Afterpay and other 'BNPL' providers skirt consumer laws Afterpay and its rivals revolutionised the market by developing digital technology to make it very easy to sign up (automating credit checks to make approval almost instantaneous), and devising a revenue model built on charging merchants a transaction surcharge and customers late fees.īy not charging interest payments, BNPL companies are not subject to the same regulation under the National Credit Code as credit providers such as Visa or American Express. A new line of creditĬredit services have been around for decades. And greater regulation looms, with growing concerns about the buy now, pay later model encouraging customers – especially younger people – to get into debt. They reflect some hard truths about the BNPL market.ĭemand for these services isn’t growing as strongly as expected. These numbers are less headline-grabbing than those reports of the whole sector falling 80%, but they still significant. Why Jack Dorsey's Square paid a record $39 billion for Afterpay The worst performers were Splitit and Laybuy Holdings, down almost 80%. (Afterpay is now Australia’s 15th most valuable stock, with a market capitalisation of about A$32 billion.) The best performers were Fatfish Group Ltd and Novatti Group, followed by Afterpay, whose share price was up about 15% from November 30 2020. In the 12 months to November 30 2021, the 15 ASX-listed BNPL companies lost an average about 36% of their share value.
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