Rising interest rates, bad debts put buy now, pay later sector on the brink

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Rising interest rates, bad debts put buy now, pay later sector on the brink
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Buy now, pay later is a popular payment method, but the sector is facing a perfect storm of rising interest rates, bad debts, a crowded marketplace and looming regulation.

"In my view, I think Afterpay would be lucky to be trading at $20 today if it were a standalone business," Mr Beadle said.

Zip Co's stocks plummeted 93 per cent, down from $8.21 to 53 cents in a year. It is planning to buy Sezzle, which has tumbled 96 per cent, from $8.24 to 30 cents. Zip's percentage sits at 9.7 per cent, followed by non-ASX-listed major players Klarna's and Affirm's . Some BNPL companies have signed up to a voluntary code of practice, which consumer advocates argue does not contain enough protections."[I'm] not interested in having an argument about whether or not this is credit. It clearly is," he said.Stephen Jones says BNPL will be regulated by mid-2023.

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