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great post... the noose is tightening around legacy bnpl.. from...

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linc1025

357 Posts.

83

27/02/23

05:03

Post #: 66475366
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Originally posted by LordNigel: ↑

just finished watching the Dec 22 webinar again - the 40% part is relating to where we don't need to use Goldman and therefore not impacted by interest.

my overall feeling at this time is that networks like visa, master etc need to really dump legacy BNPL and actually focus on SPT, I can see they are "keeping it open" and playing a longer neutral game as their experts already knew BNPL would be run down to never be a significant threat.. but it seems they could do even more...

Like, SPT seems to be a bit of an untapped answer to credit card companies. If the new generation are scared of credit cards, it really makes sense to advertise like heck the SPT product, not just to merchants (which SPT are kind of doing on own), but directly to the next generation to get them better engaged as ongoing clients.

understanding credit card companies are trying to make money as they want to charge interest on credit.. but if you have the new generation coming up expecting /ownly wanting Legacy BNPL I guess you have three courses?

1) wait and let legislation destroy them, the. the young people have no where to turn. is possible will happen and already started. it's likely to me big ones will remain like PayPal and Afterpay etc.

2) sit on the fence and say sure you'll partner and support BNPL to get a tiny cut, basically side line. (which seems the way they doing it at the moment). here you just partner with the 1) above and wait and take a tiny cut and/or consider it a feature for clients

3) do the above 2 BUT also push a product like SPT and use it as a tool to lift young people off crappy legacy BNPL and show them how credit can really be used.. if not as the little legacy BNPL go bust, will see perspective customers shift to the 2 top other BNPL.. this would be a missed opportunity.

in my mind 3) makes allot of sense -- not sure if others see this? I think it really is a way to target the young ones and not just give them interest free methods, but enable them with credit cards and do a social justice - training them and exposing them to credit cards which they otherwise won't get. We all know the world runs on credit, if we aren't careful we will end up with a generation of "not getting a credit card out of protest" but they don't actually have financial literacy enough to understand what they are protesting against - SPT could easily become a teacher aid here, if both merchants and network providers combined to "package and market" this and target young people who are soon to be looking around as they find they aren't getting the deals from their legacy BNPL anymore and they are claiming "broke" from unhealthy habits..

just my thoughts for the day...

exciting times ahead for SPT either way.

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great post... the noose is tightening around legacy bnpl.. from regulation & the bad debt, to high operating expenses and in ZIPs case; another 242m loss with a customer base of 7.3m.
Block is in all sorts of trouble with a 541m loss over 22.

The tide is turning & Splitit holders will be rewarded for the years of pain. No such thing as free money, somebody always has to pay.

SPT Price at posting: 17.5¢ Sentiment: None Disclosure: Held
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