The country's biggest standalone buy-now-pay-later (BNPL) provider said Australia's June-quarter net bad debts, which are written off as a percentage of the total transaction value (TTV), came in at 3.1% - its highest value since the first quarter of 2022. BNPL companies typically offer on-the-spot interest-free short-term loans with minimal credit checks that spread payments over weeks or months, and are largely used by cash-strapped people taking debt, sometimes more than they can afford. "Zip AU experienced net bad debts ... reflecting a combination of controlled TTV, seasonality, increasing softness in the external environment impacting consumer credit more broadly ... Zip AU has again adjusted settings and implemented initiatives in response to current market conditions," the company said in a statement.