Buy now, pay later under pressure to adopt credit checks

Shares in Minnesota-headquartered buy now, pay later company Sezzle sank to a new low as fresh concerns about regulation and the United States market circled itsZip chairman Diane Smith-Gander. Analysts have questioned if the firm should exit its US business.

Mr Beadle said while Zip is reviewing its capital allocation globally, growing the US would bring more risks in terms of credit quality.“We are concerned that if Zip tries to grow its US business to profitability, this will require taking on more risky customers and add to its credit risk, which may potentially drive even larger losses ,” Mr Beadle said.

are on track, following its “material first half 2022 earnings miss” and the $170 million capital raising that was undertaken in February to help capture cost-savings from the Sezzle merger.

Great news

But banks can keep screwing people with high interest rates Banks don't like the competition.

Too late

mmm... so it turns out that lending to poor Australians for profit isn't so profitable... they wouldn't have a business model at all if welfare payments were a sustainable figure and the wealthy actually paid their proportion of tax...

But I thought they weren't credit providers?

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Buy now, pay later regulation inches closerThe booming sector will be treated as credit, Assistant Treasurer Stephen Jones says, paving the way for tighter rules. geoffrey_payne I wonder if any of our Twitterati colleagues can recall the 'Lobbyist firm of choice' of the LNP that was engaged by the Pay Later Industry' to stop their regulation as now proposed ?....and who was their go to person in that firm ? About time.
Source: FinancialReview - 🏆 2. / 90 Read more »