Shares in Australia’s buy now, pay later juggernauts have tumbled after the Reserve Bank of Australia (RBA) said it was gearing up to probe the sector and its refusal to allow retailers to pass on merchant fees to customers.
Buy now, pay later offerings such as Afterpay have proved so popular in Australia that they have been blamed for a dip in credit card accounts and left industry incumbents such as Mastercard and Visa scrambling to catch up.
The services, which processed at least A$6bn ($4.1bn) in payments in 2018-19, typically charge merchants much higher fees than card schemes.
To continue reading...
Our Key Benefits
PaymentsCompliance is a premium information service for compliance, legal and regulatory professionals. Our award-winning regulatory monitoring platform is used by many of the world's leading payment services providers and e-money institutions, regulators, challenger banks, fintechs and law firms.
We keep our clients informed of critical regulatory change and help them understand, with in-depth analysis, when change is coming and the implications for their organisation.
We provide our clients with a quantifiable and significant ROI by reducing the amount of time and money spent monitoring and analysing regulatory environments in multiple jurisdictions.