Afterpay’s shares recover as the fintech backs greater regulation of buy-now-pay-later consumer lending
Payments fintech Afterpay, whose shares were hit hard after a Senate inquiry was formed to investigate consumer lenders not covered by the financial services royal commission, says it supports “appropriate regulation” and oversight by corporate regulator ASIC.
The company says its buy-now-pay-later model is different to traditional credit, a fact recognised by the New Zealand Government when it recently decided not to include products such as Afterpay in local credit regulations.
“Afterpay welcomes the opportunity to participate in any review to ensure an informed discussion takes place in an appropriate forum and that the differentiated nature of Afterpay’s service is clearly understood,” the company said on a statement.
The fintech is recording explosive growth and now has 2.3 million customer and 17,000 merchants using Afterpay. In its annual results posted in August, the company recorded revenue up 397% to $113.9 million and a loss of $9 million.
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