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Fewer Shoppers Used BNPL In December

Afterpay and Zip both had a “soft end to the year”, according to Citi researchers, with fewer customers visiting and using both mobile platforms and website in December compared to the same time in 2020.

Citi collated data from several sources, including SimilarWeb and Sensor Tower, and found Zip mobile app downloads declined 37 per cent year-on-year in December, while Afterpay only fell 2 per cent.

“We forecast total (transaction values) to grow to $2.4bn in (the second quarter of the financial year),” wrote Citi analyst Siraj Ahmed.

“Following the Financial Conduct Authority’s review of BNPL in the UK, the US Consumer ­Financial Protection Bureau last month opened a probe of BNPL products, sending notices to providers seeking additional data.

“While increasing regulation is not surprising given the increasing popularity of BNPL, we see the larger-scale players as ­better placed given the need to ­invest in the systems and processes to comply with new regulatory requirements.”

Vsits to Zip’s website from local users declined 11 per cent last month, year-on-year, falling 6 per cent for Afterpay.