Sumary of ‘700% loss’: Bad news for Afterpay, Zip:
- Australian buy now, pay later providers have taken a beating on the stock market with shares plunging on average 80 per cent with the sector losing millions and a reported dive in consumer interest in the product.
- Rival BNPL service Zip also reported a $652 million loss, a whooping 3000 per cent increase on last year, where it had announced a $20 million deficit.
- ”It comes as consumer groups warned that BNPL services could contribute to a “debt spiral” for people already struggling, with calls for the industry to be more tightly regulated like other financial products such as credit cards.
- Katherine Temple, the director of policy and campaigns at the Consumer Action Law Centre, has previously flagged that young people could end up in trouble if they rely on BNPL services.