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Buy Now Pay Later (BNPL) Stocks - which one and why?

Discussion in 'ASX Stock Chat' started by kenny, Nov 10, 2019.

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  1. kenny

    kenny

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    I'm interested in hearing everyone's views on this sector.

    How does one compare each of them and importantly assess each new entrant as they list with shiny promises?

    Openpay Pty Ltd lists soon which is an aggregation of multiple BNPL businesses such as JAM Payments and Evoke Autopay.

    What metrics would be useful to compare them?

    When does the consolidation start and the small players get eaten?

    Some listed players include;
    • Afterpay Touch Group Ltd (ASX: APT)
    • Zip Co Ltd (ASX: Z1P)
    • Splitit Payments Ltd (ASX: SPT)
    • FlexiGroup Limited (ASX: FXL)
    • Quickfee (ASX: QFE)
    • Sezzle Inc (ASX: SZL)
    Unlisted ones include;
    • Affirm
    • Klarna partnering with CBA
    • Latitude
    • QuadPay
    • many startups eg Quicka (for tradies), Cloudfloat and PayRight target niches
    • VISA is trialling their own BNPL offering which will worry SPT holders
    • Mastercard bought BNPL platform; Vyze in April 2019
    • Other countries have their own home grown ones eg Singapore's Rely and Grab's Pay Later service.
     
  2. frugal.rock

    frugal.rock

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    So when you ask for everyone's views, I guess everyone is being polite and saying to each other "you go first..., No no, you go first, I insist. Ladies before gent's etc" :rolleyes:

    This " Sector ", am I missing something there? o_O

    I thought Incentiapay owned Latitude... I could be wrong though, wouldn't be the first time...
    Out of your listed list, I have only had dealings with dafterpay and zip. Heard of Split It and maybe something about it doing ok in USA ?
    Could be wrong, again...:thumbsdown:

    I have been looking at INP Incentiapay recently and wondering where they went wrong. (they, not me, I don't hold, but it is an interesting beast with some long teeth...and def worthy of consideration)
    Maybe it's a case of complacency gone terribly wrong by not keeping up with rapidly changing financial revenue markets, however there seems to be a chance that the current intended shakeup may revive the SP. Time will tell.
    Can't help you with any metrics, unless you need it to the millimetre. :cool: Left 20, Right 10, Mark!
    F.Rock
    PS; Ladies to the left, gent's to the right, chicken pluckers- up here with me! Form an orderly queue to respond.
     
  3. Knobby22

    Knobby22 Mmmmmm 2nd breakfast

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    It's a complex area.
    I still like Afterpay, Zip is good at what it does, Latitude is a bit pathetic, SPT is just a rather average app which won't be around in two years,
    Karma Could be a big competitor to Afterpay internationally.You can expect more international competitor to Afterpay.
    Sezzle is a USA Afterpay clone but I can't see it getting enough market share. Could be wrong.
     
  4. frugal.rock

    frugal.rock

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    I failed to mention that 2 brokers recently
    updated their recommendations on dafterpay.
    Upgraded to buys with targets of $45 thereabouts, one was bell poopers, can't remember the other.
    F.Rock
     
  5. Sdajii

    Sdajii Sdaji

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    I bought in and out of APT last year. I did okay, made some money, but certainly would have done a lot better if I held on for the big multibagger. Over the last couple of years I seem to consistently buy at good times and sell at bad times.

    APT is at the top of your list, not surprisingly. It's extremely difficult to evaluate, it's not like a cake company where you have relatively fixed overheads, a relatively consistent cost per cake and a sale price, so profits largely depend on sales. It's not like an oil company where you have a cost of production and profits will simply depend on the price of oil. APT could be anything from something which never makes a profit to something which becomes a massive company which is still a hugely profitable blue chip gig in 20 years. There are so many variables. Comparing them to each other is also very difficult. A great deal of future success is already priced into APT, which obviously makes it dangerous, but if you believe in the blue sky scenario of APT, it's still a multibagger from here.
     
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