- Fintechs, whose shares slumped yesterday on news of a Senate inquiry, were rising in early trade today.
- Two payments companies released statements supporting a review by corporate regulator ASIC into the buy-now-pay-later consumer credit sector.
- Afterpay says it backs “appropriate regulation” and oversight by corporate regulator ASIC.
Shares in fintech stocks, smashed by news of a Senate inquiry yesterday, reversed direction and headed higher.
Payments company Afterpay, which yesterday lost 18%, was up more than 14% to close at $12.95.
Zip Co was 3.7% higher at $0.965 and Credit Corp 6% to $19.99.
Today, both Afterpay and Zip Co released statements supporting a review by corporate regulator ASIC into the buy-now-pay-later consumer credit sector.
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 customers 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.
However, news of the Senate inquiry punished Afterpay’s share price. They dropped 18.93% yesterday to close at $11.35. The company listed on the ASX in May 2016 at $1 a share.
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