Afterpay enters subscriptions market, Monzo’s Pay Later, Suncorp hops onto the BNPL bandwagon, and BNPL stocks get clobbered in Australia

BNPL player Afterpay (ASX: APT) said last week it intended to offer buy-now-pay-later (BNPL) options in the US and Australia for subscription payments including gym memberships, entertainment and online services.

“By offering customers the option to pay for subscriptions with Afterpay, we’re not only giving consumers flexibility to pay for more expensive monthly costs, but we’re also helping our merchant partners capture a wider consumer base through this convenient experience,” said Zahir Khoja, general manager of North America for Afterpay, in a written statement. (TechCrunch)

BNPL: Monzo Flex

Digital challenger bank Monzo, which is based in the UK, has rolled out its Flex product, a “pay later” option and is now inviting people who’ve asked for early access to “apply for Monzo Flex each week.”

It allows users to pay in 3 instalments at 0% interest, or over 6 and 12 instalments at 19% APR (variable).

A simple application needs to be approved, and then customers can choose a limit up to £3,000. (CrowdFund Insider)

Suncorp PayLater

In Australia, Suncorp (ASX: SUN) jumped into the BNPL fray, teaming with Visa (NYSE: V) to offer a product titled PayLater.

“Suncorp Bank PayLater comes with no extra costs to customers making payments, nor to businesses taking payments,” said Suncorp Bank CEO Clive van Horen. “This is a win for Australian businesses who are currently paying millions of dollars in traditional BNPL fees, on top of other cost pressures.”

“Eligible customers now have the option to head in store with their physical PayLater Visa debit card or to use it online via their digital wallet.” (Yahoo Finance)

Aussie fintech stocks take a bath

According to a report in The Guardian, stocks of Australian buy-now-pay-later companies have plunged by an average of about 80% compared to peak prices within the past year. The reasons: Rising losses and waning consumer interest in the products.

The chief executive of McLean Roche Consulting, payments analyst Grant Halverson said that the sector had lost more than $1.05 billion in 2021.

“Most BNPL apps’ 2021 reports were bad, as sales growth declined, credit losses increased and cash burn increased, with a number seeming questionable in cashflow terms,” he observed.

Related Story: Goldman Sachs Snaps Up BNPL Fintech Greensky For $2.24B

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