Those who use buy now,pay later apps are much more likely to also use advance-pay apps,making them more susceptible to falling into financial difficulties.
Afterpay has opened the door to conducting credit checks on some customers as it prepares for regulation of buy now pay later products.
Zip Co co-founder Peter Gray has talked up the fintech’s resilience,even as the market worries about how quickly the embattled fintech is burning through cash.
Zip co-founder Peter Gray warned against bringing the entire BNPL sector under the same regulatory framework as big-ticket personal debt products such as credit cards or mortgages.
As a cost of living crisis continues to bite,Australia’s largest consumer advocacy groups,charities and legal centres want the federal government to nip the next wave of credit products in the bud.
Having exploited the regulatory blind spots and ultra-low interest rates to the hilt,the buy now,pay later sector now faces a grim reality check.
As the number of Australian BNPL accounts has grown beyond 7 million,the government has unveiled three options for tighter regulation of the industry.
The “buy now pay later” sector will be regulated under credit laws,which will enhance consumer protections.
There’s an issue with the level of difficulty resolving a problem with the digital service,a significant,global player in the fintech space.
Buy now,pay later player’s youth-focused app - Money by Afterpay - is being shuttered less than a year after its launch.
Zip Co has vowed to further reduce burning cash on its overseas operations,as the company shutters its operations in the UK.