Perhaps the biggest threat provided by CBA’s entry is what it will mean for future regulation of buy-now-pay-later operators.
Global giant PayPal is set to take on Afterpay and Zip on their home turf,in a sign of the growing competition in the fast-growing buy now,pay later sector.
Buy now,pay later firms have committed to disclosing caps on their late fees and carrying out mandatory checks on the finances of customers borrowing larger amounts.
Zip Co says it will accelerate its international growth in the year ahead and continue looking for offshore expansion opportunities.
Zip’s value on paper at $7.5 billion is now higher than some of the country’s best-known companies,including JB Hi-Fi,AGL Energy,Crown Resorts and Nine Entertainment.
Rapid growth in buy now,pay later (BNPL) providers is putting consumers at risk of financial harm,an official review in Britain has found,calling for urgent regulation of the sector.
As investors cheered rapid US growth,Zip Co co-founder Peter Gray said Americans were several years behind Australians in their awareness of buy now,pay later schemes.
In the six weeks since the platform was launched,Superhero has garnered 17,000 signups.
Westpac's banking services partnership with Afterpay will force fintechs and the big banks to reassess their relationship with each other,a trend that Zip co-founder and boss Larry Diamond says further reinforces the disruption sweeping the financial services sector.
Westpac has announced it will dump its stake in Zip Co just one day after it signed a deal with its buy now,pay later rival Afterpay.
Carsales Australia boss Ajay Bhatia says Australia should identify four or five pillar industries for special focus to diversify the economy and strengthen the recovery.