Tyro - bank debt/ borrowings - rise in interest rate exposure - NIL -
Tyr has no bank debt, its business model does not require debt
Tyro model is a payments process company, it processes consumers money in a transaction and gives it to its customers -
BNPL models borrow huge amounts of money to fund a merchants transaction by lending to a consumer which it hopes to recycle a few times a year.
BNPL ers borrow funds which will be directly affected by a rise in interest rates, which affects its margin.
Tyro/ digital payments businesses dont have a need to borrow ever larger money in order to operate and deliver top line transaction growth, they merely rely on a rise or fall in transaction volumes to generate top line transaction growth and margin.
sadly Tyr is lumped into the popular sector of BNPL
BNPL sector will see a compression of margins as they are directly affected by the cost of money.
TYR Price at posting:
$3.17 Sentiment: Buy Disclosure: Held
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