Expect 30% fall in next few days, page-56

Maybe already out there.....still interesting news..


PayPal has introduced a buy now, pay later option for its nine million Aussie customers, but has ditched one of the sector’s most controversial measures.

The US payment giant is muscling in on Australian company AfterPay’s territory, which currently has a 73 per cent share of the market.

PayPal’s new option called ‘Pay in 4’, is exactly the same business model as Afterpay – allowing people to make four interest-free payments – but it won’t charge late fees.

Afterpay made $70 million in late fees in 2020, while Credit Suisse has estimated the company will earn about $107 million this year from the charges.

In the 2018-19 financial year, missed payment fee revenue for all buy now, pay later providers totalled over $43 million, a report from the Australian Securities and Investments Commission (ASIC) released last year found.

The corporate regulator has criticised buy now, pay later providers such as Afterpay, Zip and Humm for charging excessive late or other fees.

It found one in five buy now, pay later users are missing payments, with the younger generation particularly impacted as half of users aged between 18 to 29 cut back on essential items to make repayments.

It’s report also revealed more than 1.1 million transactions in 2019 incurred multiple missed payment fees and warned that 15 per cent of users, and half of which were under 29, had taken out an additional loan to pay for the services.