A year ago, observing the BNPL industry was like watching an episode of ‘Who Wants to be a Billionaire’. Today it’s like tuning into ‘Survivor’. | OPINION by EKnightOfficial
The buy now pay later sector feels like it’s collapsing in real time. A year ago, it was like watching an episode of ‘Who Wants to be a Billionaire’. Today it’s like tuning into ‘Survivor’.
There was clearly a need to rationalise a sector which, in its ascendancy, saw new players popping up like mushrooms - with each new outfit ignoring the conventional rule of economics that suggests that not everyone can win in a crowded market. The smart money understood that even in the BNPL heyday when valuations on these businesses were counterintuitively lofty, the music would eventually stop.
While tighter regulation was always a threat, it is now closer to a reality. On Tuesday Labor’s newly minted assistant Treasurer, Stephen Jones made it abundantly clear that the time for leaving these unsupervised corporate teenagers to party is about to end. It’s time for a chaperone. While regulation lies ahead the more immediate concern is rising interest rates. It was the first operational hurdle and arguably most have tripped on it.
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