Competition with Sizzle , and Zip and Flexigroup and the spectre of bad debts

As first mover APT had a good run and has become the behemoth it is today, however with merchants signing up for multiple BNPL providers - AP, Sizzle, Zip, Flexigrou etc etc , how will all the players control their bad debt risk ?

Overdue on Afterpay, switch to Sizzle etc. The lack of credit decisioning ( they do run ID checks ) but do not check a customers credit history beyond their ability to provide a debit card and make a first payment exposes all BNPL to a running risk on their bad debt. Whilst growth is on a steep curve a bad debt problem can get hidden by the growth. New customers that who make a first payment to get goods, have not run full cycle and in the growth phase that skews the default data .

If default fees run.......then the regulator has pressure to make more of a issue of it than than the royal commissions " lets talk about responsible lending obligations sometime chaps "

Add the cost of even a basic credit report and the paper thin margins could be eroded further

Smart money exit time ?