BNPL: Was It All a Dream? Wake Up and Smell the Coffee

It seemed like a good idea at the time, but if you look at valuations for Aussie Buy Now, Pay Later (BNPL) stocks, you will find that you can buy one share of each remaining company for about the price of coffee at Starbucks. While the coffee might get your blood flowing with 180 milligrams of caffeine, the stocks may be worth even less tomorrow. Back in 2019, we wrote about the emergence of Buy Now, Pay Later in Australia. It seemed like a good idea, but we questioned the model's sustainability, and the unlikeliness BNPL could displace more [...]

By Brian Riley|2022-03-28T09:43:12-04:00March 3rd, 2022|Tags: , , , |

BNPL Gets Bigger and Better with Afterpay and Square

As retailers begin preparing for the winter holidays and Buy Now, Pay Later (BNPL) players such as Mastercard, PayPal, and Visa roll out their point of sale solutions, Square entered the market with a splash. Square, founded by Twitter’s microblogging entrepreneur, Jack Dorsey, provides a range of integrated merchant payment services. The firm recently acquired BNPL giant Afterpay. Square, founded in 2009, helps small merchants compete in e-commerce. The firm began as a solution to help Jack Dorsey’s friend, Jim McKelvey, sell his crafted blown glass at a business called Third Degree Glass Factory. The story goes like this. McKelvey, [...]

By Brian Riley|2021-08-05T17:49:24-04:00August 5th, 2021|Tags: , , , |

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 [...]

By Brian Riley|2022-03-01T15:47:40-05:00June 1st, 2021|Tags: |

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