- BNPL companies add $415 million to their collective value on Afterpay acquisition news.
- Zip Co surged $376 million in value, while Sezzle added $23 million & Humm gained $16 million on Afterpay?s acquisition news.
- Square acquiring Afterpay for $39 billion is the largest acquisition in Australian history.
Australian buy now pay later companies added a collective $415 million to their total value on the back of Square?s $39 billion offer for Afterpay.
Without lifting a finger, Zip Co increased 9% or $376 million in market value on Aug. 2, while Sezzle added $23 million and Humm gained $16 million.
Square?s $39 billion acquisition of Afterpay is the largest in Australia?s history.
Without lifting a finger buy now pay later providers Zip Co, Sezzle and Humm rode the Afterpay wave following news that Square is acquiring Afterpay for $39 billion.
As investors piled into BNPL providers on the share markets, rumours continue circulating that Zip Co could be the next takeover target. Some are predicting Swedish-based rival Klarna may be a possible suitor.
With momentum surging in the BNPL sector, financial institutions with fear of missing out (FOMO) such as Commonwealth Bank, Citibank and PayPal have flagged their own near-term intention to join the buy now, pay later party.
The BNPL sector has provided consumers with an instalment payment product that better aligns with limited personal budgets.
However, as the market matures, regulators continue to raise concerns about consumers acquiring more debt through a product that for all intents and purposes looks a lot like credit.