BNPL industry continues to witness positive developments in 2021, backed by new entries, product and geographical expansion, and economic recovery hopes under Biden’s regime.
The US stimulus package is expected to increase the consumer retail activity.
Affirm’s latest US IPO indicates encouraging setting for the BNPL industry.
The New Year 2021 could prove to be overwhelming for the Buy-Now-Pay-Later industry that amassed significant consumers and merchants amid the e-commerce frenzy during the COVID-19 pandemic.
The proponents of BNPL regulation emphasise that late payment of fees is one of the critical issues affecting a significant portion of BNPL consumers. ASIC’s review of BNPL sector undertaken during November 2020 indicated young customers most affected by the payment arrangements.
COVID-19 boost to BNPL Space
2020 was not all bad, and it spurred many developments that the world might later be thankful for. Significantly, technological integration remained the critical highlight during the pandemic, speeding up the adoption of online payments. It offered a much-needed push to fintech industry, while BNPL players continued to flourish on the pandemic-induced growth momentum.
Affirm’s latest US IPO
The encouraging potential of the BNPL industry has been further validated by the latest IPO of Affirm Holdings Inc. The Fintech company raised US$1.2 billion with the IPO priced at $49 per share, which was significantly higher than the anticipated range.
Afterpay and Zip under the spotlight
Australian payment setting also witnessed a stellar performance of Afterpay Limited that not only saw a significant rise in the customers and revenue, but also posted huge returns last year. 2021 is proving no different to the company which has edged up by over 26% so far.