Australia's BNPL stocks tumble as impending govt regulations weigh

Splitit

22/05/2023 05:21

(Adds comments from Zip COO and Afterpay, updates share moves)
    ** Shares of buy now, pay later (BNPL) firms decline after
the Australian govt says it would introduce laws that will
consider BNPL services as credit product
    ** BNPL services will be required to have credit licence,
make allowances for financial hardship and minimum standards for
conduct that could subject them to the same laws as credit card
providers - Financial Services Minister Stephen Jones
    ** ASX-listed shares of Afterpay-owner Block Inc  SQ2.AX 
fall as much as 2.1%, posting their biggest intraday pct drop
since May 15
    ** Afterpay spokesperson says change a "strong first step in
the development of a fit-for-purpose buy-now-pay-later
regulatory framework"
    ** Zip Co Ltd  ZIP.AX  tumbles 7.8% to A$0.53, marking its
sharpest intraday drop since Feb. 23; Zip Chief Operating
Officer Peter Gray says change would mean "business as usual"
    ** U.S. BNPL player Sezzle Inc  SZLDA.AX  down 2.2%
    ** Splitit Ltd  SPT.AX  and Latitude Group  LFS.AX  trade
flat; Humm Group  HUM.AX  adds 1.2%
    ** Govt will unveil draft legislation for consultation later
this year and bill will be introduced in parliament by the end
of this year - local media reports
    

 (Reporting by Harish Sridharan in Bengaluru)
 ((harish.sridharan@thomsonreuters.com))