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Non-payment is a factor in many businesses.If BNPL losses due to...

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jnkmbx

462 Posts.

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10/01/22

23:05

Post #: 58763713
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Originally posted by PigsMightFly: ↑

@jnkmbx

But that is not how it works in practice. The typical BNPL clients are young females with part time jobs. They use BNPL to buy junk, max out their limit and sign up with another provider. The debts are mostly unrecoverable and are written off.

I've even witnessed a sales assistant at a jewellery store basically telling a customer how to scam APT.

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Non-payment is a factor in many businesses.
If BNPL losses due to non-payment are in line with that of credit cards (AMEX 2.7% of loans in 2019), then I think their business model is agreeable. Afterpay appear to be controlling these losses well (0.6% of sales), but I cannot speak for the other BNPL businesses.

APT Price at posting: $72.29 Sentiment: Hold Disclosure: Held
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