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More Australian Retailers Offering Buy Now, Pay Later Options According to Zip
Retailers and shoppers continue to flock to Australian buy now, pay later (BNPL) providers in 2021.
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SYDNEY, April 30, 2021 /PRNewswire/ It seems Australian shoppers can t get enough of splitting up purchases, with recent research revealing that 5.8 million Australians currently have at least one buy now pay later account.
Industry giant, Zip, has more than 2 million customers across Australia and New Zealand on its platform.
Zip
Earlier in April, more retailers piled into the Zip platform, responding to the growing consumer awareness of and demand for buy now pay later payment options.
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.