Buy now, pay later (BNPL) firms Afterpay and Zip both announced strong third quarter growth figures this month but are still too hot to hold says Morningstar equity analyst Shaun Ler.
Both stocks screen as significantly overvalued despite a considerable lift in Afterpay s fair value to $75 last month, and a modest lift in Zip s to $5.80 following the result.
Afterpay (ASX: APT) was last trading at a 55 per cent premium to fair value at $115. Zip Co s (ASX: Z1P) last close price ($8.02) represents a 38 per cent premium to the fair value.
On Zip, Ler believes investors are overestimating the company s long-term growth potential.
Buy now, pay later twist: Flybuys links with Klarna
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Australiaâs oldest customer loyalty scheme, Flybuys, is linking up with one of the newest players in the booming buy now, pay later sector, Swedish-based fintech Klarna, in a move likely to trigger similar deals between rewards programs and buy now, pay later providers.
Under a partnership due to go live in May, Flybuysâ 8 million active members will be able to collect points when they use Klarnaâs buy now, pay in-four app, while members of Klarnaâs Vibe rewards program will be able to convert each point they earn into three Flybuys points. Points are awarded on repayments to encourage responsible shopping.
What are the largest Australian buy now, pay later stocks by market cap? Here’s a look at five of the biggest companies right now.
Since Afterpay’s (ASX:APT) Australian launch in 2014, buy now, pay later (BNPL) fever has taken over in the country, and investors are looking for the next big opportunity,
Sometimes cheekily referred to as “buy now, profit later” stocks, BNPL companies often see their share prices go through the roof after making their debut in the public markets.
The appeal of BNPL services is that shoppers can use payment plans to buy items, but still receive their purchases right away. BNPL agreements can be used for both low- and high-priced items.
Just another type of debt : Australia s struggle to regulate buy now, pay later firms theguardian.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theguardian.com Daily Mail and Mail on Sunday newspapers.
Neobank 86 400 to be acquired by NAB in $220 million deal
86 400 chief executive Robert Bell. Source: supplied.
Aussie neobank 86 400 is set to be acquired by NAB, combining with the big bank’s own digital offering UBank.
NAB already owns 18.3% of 86 400, having taken part in its Series B funding round. Now, it plans to acquire the remaining shares for approximately $220 million, valuing the business at just shy of $270 million.
The deal is still subject to approval from regulators and shareholders. But, if and when completed, it will mean the second exit of an Aussie neobank from the market.
Fully backed by payments provider Cuscal, 86 400 has always been in something of a grey area of independence.