potential increase in bad dept?, page-7

I do happen to have some knowledge of payday lenders. Payday lenders made the bulk of their income through fees - the interest charged was a small consideration. It's true the vast majority of their clients did revolve from one loan to another, and would go to extreme lengths to maintain their ability to borrow. They also had relatively high default rates, but this was well managed. I conducted an audit on a payday lender (around ten years ago). I no longer have access to the report but the default rate was in the very low teens.

This was factored in as part of the business model. If the BNPL gets to even half the default rate of the payday lending chain (a successful business incidentally) then they will have the same level of solvency as the customers the payday lender targeted.

My experience in this has always been my cause of concern for the BNPL business model. 75% of credit card transactions attract no interest. BNPL is financially attractive to the cohort who are paying interest on their credit card, that is, those who manage their credit card debit less well. If that is your target customer base, heading into a recession, why do you think the smart money is abandoning BNPL?

You can ignore my rationale and call me a downramper. I sincerely hope you do well with your hopefully diversified investments. We're all hurting at the moment, I'm down 35% on my investments, but in my opinion, people should think very carefully here.

Good luck, and please do your own due diligence. Look at the figures provided by the company, check the data that's available and do the sums yourself.

I don't find 'downrampers' or 'uprampers' on Hotcopper good or bad - I find them useful. Both have pointed me in the direction of very useful research that has helped me to inform my investments, so (in advance) spare me your labels. Mine is just an opinion which you can ignore or verify in you choose.