Buy now, pay later is pulling off the improbable – a comeback
Block and Zip valuations are rising as peak interest rates pass. Klarna is considering listing in the United States. Is the sector’s winter finally over?
It was not long ago that the buy now, pay later sector was in an existential crisis. Valuations had been eviscerated by rising interest rates, and there were plenty of questions about whether a sector born of an era of ultra-low borrowing costs could survive.
This week – with an end to peak rates in sight – new questions have emerged. Could buy now, pay later have weathered the market storm, and might it survive as a favoured way for Millennials to pay?
James EyersSenior ReporterJames Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay Connect with James on Twitter. Email James at jeyers@afr.com.au
