Revelations for Z1P & the entire BNPL sector?

The financial press is reporting deeply disturbing revelations about Z1P and the entire BNPL sector.

Over the last few days, the sentiment of the professional investing community has dramatically turned against the BNPL space as the narrative has become highly cynical toward the share price valuations of companies within this sector.

Among the key reasons sighted by the financial press;

• A stampede of competition about to swap the entire sector from global giants & major banks, who already have the existing distribution network among the merchants, rendering them capable of crushing the BNPL minnows with ease.
• And because there is no barrier to entry to enter this sector, the majors banks will simply create their own replicated BNPL products, better & cheaper, which is feared will quickly wipe out the likes of ZIP & Afterpay in a short time span.
• A frightening rise in the number of young consumers now reporting financial distress who have debts owed to BNPL companies - defaults to rise.
• BNPL shareholder registries consisting of many frighted retail holders, plenty of whom are young first-time investors who acted on FOMO and bought in at higher prices without any regard for the dangerous waters they were entering, and others who replaced their gambling habits by turning to the sharemarket.
• Stimulus measures now ending, putting a halt to the welfare being enjoyed by the millennial cohort in recent months, which temporarily spiked their spending habits.

The momentum started to turn against the BNPL sector about 3 weeks ago. It is now clear this has become speeding freight train of negative sentiment with nothing in sight stopping it.

Any current holder would now have to be asking themselves this question - is it riskier to be holding shares or not in this sector?