Kelly continued his warning for the industry: These businesses are tiny and they are not the chest beating, bank killing giants that they pretend to be.” This gives the BNPL sector a market share of card payments of only 1.5% after 8 years of operation. “The BNPL as an industry in Australia had total sales of $11.4 billion last year compared with credit and debit cards which came to a total of $750 billion. Kelly warned investors that BNPL companies are extremely good at marketing and hyping up their products, but ultimately the numbers are not in their favour: Making things worse, the companies have been running heavy losses and stacking up massive debts for years.
#Zip share price asx today zip#
This is because every single BNPL company in Australia, including the market leaders: AfterPay (now owned by Block) and Zip Pay are yet to turn a profit or pay a dividend. How did Zip and the entire sector collapse in such spectacular fashion and can investors expect prices to recover any time soon? Zip Pay (ASX:Z1P) All-Time Price ChartĪccording to the managing director of Payment Services and payments industry expert Brad Kelly, Zip Pay and the remaining Aussie BNPL providers are set to experience an “implosion” throughout the remainder of this year. So, what actually happened to Zip Pay and the Australian BNPL sector. This is particularly true for anyone that bought shares in former Aussie market-darling Zip Pay (ASX: Z1P) which is currently trading for $1.72, down over 80% from its all-time high of $12.50 in February last year. If you’ve invested any amount of money in Australia’s once-booming buy now, pay later (BNPL) sector over the last year, you’re probably still wincing every time you open up your portfolio.
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