Rating agency Moody’s says some BNPLs may run out of funding within three years.
Higher interest rates and a tougher economy has soured investor sentiment.
Increased competition means some firms may not survive.
Buy now, pay later operators face an existential threat as rising interest rates and a worsening economy mean they will struggle to maintain the support of fickle, or “confidence-sensitive” equity investors.
That’s the conclusion of global credit rating agency Moody’s, which says the harsher economic conditions have exposed inherent weaknesses in the buy now, pay later business model.
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Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.com
