Further to this post I wanted to add some additional information...

Further to this post I wanted to add some additional information plus a few theories regarding the lack of growth in BNPL revenue.

In September quarter there were 4,806 customers activated. In the December quarter we saw this number increase to 10,989. This is an accumulated total. This means December activations were slightly higher than September however the BNPL income was slightly lower.

Some possible theories below that I have and I'd welcome others to discuss any ideas that come to mind.

1. The first version of the app is too problematic and the customers activated in September have stopped using the service. The NTR in December is made up of new activations and cash receipts is people paying back September quarter and the iSentric business as stated in the previous post.

2. Customers holding off on making any significant purchases prior to Lunar New Year in an aim to wait for sales.

3. Omicron concerns weighing on the spending of active customers. This is a stretch in my opinion because retail sales are trending up in Malaysia.

4. Six month payment terms are causing a delay in customers reusing their accounts

5. Competition is causing customers to shop around BNPL services resulting in customers having multiple accounts with different providers.

6. As the loan moratorium ended in January customers prioritizing loan repayments over making new purchases.

7. A combination of all of these theories