Investors are losing interest in BNPL stocks as platforms struggle to grow
Official data don't support a BNPL growth story meanwhile investors - and BNPL providers - are increasingly looking beyond the specific, youth-oriented, product.
The latest official data on Australian payments do not support the optimism of buy now, pay later industry players. And investors are not buying the story.
According to analysis of the latest Reserve Bank of Australia payments data by MWE Consulting, the shift from paying with credit to paying with debit over the last decade has largely run its course.
And that is not positive for BNPL which, according to BNPL innovator Afterpay, is almost exclusively linked to debit cards.
“In the overall payments market in Australia, (BNPL linked to debit) is not a driver of major significance with the share of value of purchases on BNPL being around 2% of value and 0.7% of volume,” MWE principal Mike Ebstein told Capital Brief.
