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.
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