BNPL Aussie Stocks: Truing Up the Market or Waiting for a Dead Cat Bounce?

Twelve BNPL lenders listed on the Australian Stock Exchange fell from $147.7 to $111.1 per share between April 28, 2021, and May 24, 2021. BNPL lenders lost $8.8 billion in market capitalization during the same period, falling from $37.6 billion to $28.8 billion. Mercator suspects this fall is due to rising BNPL uncollected debt and missed payments by consumers. Mercator's recent Buy Now Pay Later (BNPL) report illustrates some of the market weaknesses for BNPL, the new darling of financial services. Loose credit policies surrounding loan approvals, which seem to lack good judgment, create business losses beyond what regulated financial [...]