市场见解

Here’s why ASX BNPL shares are in the spotlight today

The buy now, pay later sector is in focus today as new reforms seek to hold it to the same standards as banks…
The post Here’s why ASX BNPL shares are in the spotlight today appeared first on The Motley Fool Australia. –

ASX-listed buy now, pay later (BNPL) shares are squarely in focus today as the government announces new payment system reforms.

The fear of regulation has long plagued the BNPL sector since Afterpay Ltd (ASX: APT) entered the scene in a meaningful way in 2017. Early on, traditional banks argued it wasn’t a level playing field as the interest-free instalment offering curbed the definition of credit.

Now, the booming BNPL industry looks set to be caught in the crossfire of the government’s latest reforms.

Payment systems regulation gets 21st century refresh

A growing trend in Australia — and much of the world — is payments being made through and being facilitated by big tech companies. This is a world away from what payments used to look like 25 years ago. Yet, the current governing regulation is the Payment Systems Act 1998.

A number of policy reviews have recommended modifications to the regulation to encapsulate current trends. This includes the involvement of ASX-listed BNPL shares, cryptocurrency, and international tech giants in Australia’s financial system.

To do this, Treasurer Josh Frydenberg will broaden what defines a payment service in Australia through new legislation next year. As a result, big tech and BNPL companies are expected to be treated equally under the umbrella of payment systems.

Furthermore, the change comes at a time when digital wallets are taking a large share of transactions in Australia. Presently, there is more than 5 million active buy now, pay later accounts in Australia. Remarkably, around 20% of all online retail transactions by value are now conducted via BNPL companies.

The Treasurer’s move to encompass ASX-listed BNPL shares and other fintechs under the new definition is for two purposes. Firstly, it will create a more level playing field for the major banks that have plowed capital into Australia’s payment infrastructure, only for international tech companies to make use of it at no cost.

Secondly, it will give more power to regulators to address concerns of a destabilised financial system at the hands of digital payment companies.

Challenging conditions for ASX-listed BNPL shares

The past 10 months or so have been fraught with challenges for the likes of Afterpay and Zip Co Ltd (ASX: Z1P). More recently, ASX-listed BNPL shares came under pressure following Financial Counselling Australia (FCA) raising the alarm on the sector.

On Monday, the FCA called upon the Australian Government to review the framework under which BNPL companies operate after it reported a surge in people in financial distress using BNPL services. The organisation found 84% of its surveyed counsellors reported that more than half of their clients had BNPL debt.

ASX-listed BNPL shares such as Afterpay and Zip have underperformed the broader S&P/ASX 200 Index (ASX: XJO) in 2021. The payment companies have fallen 16% and 10% respectively since the beginning of the year. Meanwhile, the benchmark index has gained 10%.

Despite concerns about what it could mean for the industry, BNPL shares are in the green on Wednesday morning. At the time of writing, Afterpay and Zip are up 4% and 9.9% respectively.

The post Here’s why ASX BNPL shares are in the spotlight today appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Why did the Afterpay (ASX:APT) share price go backwards in November?

Here are the 3 heaviest traded ASX 200 shares this Tuesday so far

Why Bank of Queensland, Imugene, Webjet, and Zip shares are pushing higher

ASX 200 (ASX:XJO) midday update: Zip update impresses, BOQ rises

Zip (ASX:Z1P) share price jumps 9% after hitting $10 billion milestone in November

Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!