Despite the bloodshed of the stock market, buy now, pay later is here to stay
Zip shares have fallen 93 percent in the past year, while the owner of Afterpay, US fintech giant Block, has plunged more than 70 percent. Competition from banks and technology giants is one of the reasons why BNPL’s valuation has plummeted. Credit: Matt Davidson With stock prices falling like that, it might be tempting to think about the buy now, pay later concept is in deep contention. But at this point, it is important to distinguish between the market value of these stocks, and the usefulness of the products. Much evidence would suggest that many people – especially younger shoppers – find it helpful to split their payments into four installments, rather than risk paying high interest on a credit card. That trend is unlikely to change any time soon. Recent estimates from the industry show there are around 5.9 million active BNPL accounts in Australia, and on average, they are used for small purchases of around $150. Compared to the total value of the loan or repayment, it is still