US fintech giant Block has given a strong signal that it could to launch its hit financial app in Australia,which allows peer-to-peer payments as well as trading stocks and cryptocurrencies.
Zip Co has signalled it will be more conservative in lending and will slash $30 million in costs as it looks to accelerate a plan to start making profits.
Despite a surge in revenue,Afterpay posted a huge loss as operational expenses blew out.
Many of the buy now,pay later firms that sought to replicate Afterpay’s success on the ASX have fallen on hard times. And analysts are forecasting more pain is on the way for these groups.
The “buy now,pay later” sector needs to be better regulated and the code of conduct that apples to those who are members of the industry association should be applied to all
Families borrowing from “subprime lenders” are loading up on buy-now-pay-later products and credit card debt just to cover their essentials.
About 20 per cent of buy now,pay later customers used such services for essential goods and services such as food and utilities,a Choice survey found.
The Australian buy now,pay later market has a new player – but only for the hospitality sector.
Zip says the deal will lift its scale and accelerate its path to profitability,as it faces tougher industry conditions.
Afterpay co-founder Nick Molnar has signalled the top priority for the company under its new owner Block will be to accelerate its growth.
Sezzle shares have surged after it emerged Zip was in talks with the company about a possible takeover.