Sezzle shares are sizzling after two consecutive profitable months, but analysts are paying close attention to Australia’s Zip’s survival as shares tumble 79% and it continues to burn through cash. Zip previously tried to acquire Sezzle in 2022 but backed away. Tranch raised $100 million to expand into the US SaaS BNPL market from the UK.
ZoodPay and Mastercard launched a prepaid virtual installment card for Central Asia and the Middle East. Sympl will provide valU clients with BNPL services in Egypt. LendingPoint.com looks at the rapid evolution of buy now pay later services, finding 28% of US consumers used BNPL. New research shows BNPL Gross Merchandise Value in UAE will increase from $2 billion in 2022 to $4.5 billion by 2028. BNPL is a roller coaster.
Sezzle shares jump after BNPL provider reports another profitable month
Sezzle reported Dec revenue of $13.6 million, up 16% on a year earlier and a record 9.7% of the value of sales on its platform. Sezzle said it generated a net income of $500,000 for the Dec quarter, compared with a $25.9 million net loss a year earlier. The result was stronger than expected, said research analyst Phillip Chippindale, highlighting the $2.5 million in adjusted earnings before interest, tax, depreciation and amortization, multiple revenue streams and renegotiated merchant fee rates. MarketWatch
Guess which ASX BNPL share just rocketed 24% on return to profitability
It’s a good day so far for some ASX buy now pay later shares. The Sezzle share price leaped 24% on open. The ASX BNPL company reported its second consecutive month of profitability. With two months of profitability, net income in 4Q 2022 was positive, at $500,000. That compares to a net loss of $25.9 million in 4Q 2021. Sezzle will report its fourth-quarter results on Feb 27. Motley Fool AU
Buy now, pay later provider Zip’s shares fall amid fears it is in ‘cycle of death’
Australian provider Zip has seen its shares plummet by 16% despite finally recording a profit in the US at the end of last year. Zip’s shares tumbled 79% to just 70c on the ASX amid fears it could run out of cash before leaving markets outside the US and Australia. It had already hemorrhaged money from its operations with a whopping $1 billion loss and the closure of UK operations while Europe and the Middle East were burning about $50 million a year.
Customer numbers declined by 38% in the US, Australia and New Zealand, down from 12 million to 7.4 million. US revenue grew 28% on the previous quarter to $85.7 million, while Australian revenues were up 7% at $88.6 million in the same period. Payments consulting firm McLean Roche’s chief executive Grant Halverson described Zip as being in a “cycle of death” and said the company would need to make profits as soon as possible given the company has not been profitable since 2013. New Zealand Herald
B2B BNPL startup Tranch raises £81m for US expansion
London-based fintech Tranch has landed $100m (£81m) in funding to bring its business-focused buy now pay later (BNPL) platform to the US. Tranch grew to prominence as a UK fintech last year when the company joined the accelerator program Y Combinator in the Summer of 2022. Tranch provides software as a service (SaaS) companies with BNPL financing, meaning clients can break up the associated costs into smaller repayments. Tranch divides purchases of up to $500,000 (£405,000) into BNPL payment plans. UKTN
ZoodPay and Mastercard launch virtual BNPL card ZoodPay and Mastercard teamed up to launch a prepaid virtual installment card allowing ZoodPay to scale its offerings and provide BNPL solutions to customers and merchants without being restricted to the ZoodPay network. The card will be available in Eastern Europe, the Middle East, and Africa (EEMEA). Previously, ZoodPay only offered deferred payments at participating merchants, but Mastercard’s global merchant network dwarfs ZoodPay’s existing seller base by comparison. PYMNTS
LendingPoint.com – buy now pay later loans are rapidly evolving
Even though Buy Now Pay Later loans are still gaining popularity – according to Consumer Reports, 28% of US consumers have used a Buy Now Pay Later loan service as of August 2022, up from 18% at the beginning of the year – funding sources, loan quality, and loan terms remain uncertain. The following year will be a real test of survival in a tighter economy, and amid rising interest rates, incumbents will have to retool their products and pricing to counter competition from Apple and banks. Crixeo
valU partners with Sympl to provide short-term BNPL plans for customers
The partnership will allow valU customers to benefit from Sympl’s payment plans across different product and service categories. The partnership also complements valU’s platform by bringing back valU’s popular three months tenure, the “Hattrick” product powered by Sympl and benefiting from Sympl’s short-term interest-free plan across a diverse network of partners. WAYA
UAE buy now pay later industry outlook: Lending startups going beyond typical BNPL card issuance
UAE’s BNPL Industry is dominated by a few major players such as Tabby, Tamara, Spotii, Cashew, and Postpay, among others. As competition continues to intensify in the UAE BNPL market, firms are developing new products and features such as virtual prepaid cards. The BNPL Gross Merchandise Value in the country will increase from $2 billion in 2022 to $4.5 billion by 2028. Cision
Recent BNPL Report news:
BNPL Report – Jan 21: BNPL rising; PayPal users buy in; B2B is booming, MENA growing