Buy now pay later firms are quickly becoming the alternative to credit cards during the pandemic; companies like Afterpay, Zip, Splitit and Sezzle have all seen big success with stay at home orders taking hold; Afterpay in particular has taken off, their stock is up more than ninefold since March and this week the company raised $452.6mn from institutional investors to expand into more countries; the new shares were priced 6.9 percent above the floor price, at a level the stock only hit for the first time less than a week earlier; the company could see slower growth as the economy continues to open, though Afterpay says they will be available in physical stores as well; additional regulatory scrutiny could also come to the company as they grow, “The more successful Afterpay is, the more likely it will attract regulatory scrutiny,” said Tom Beadle, a Sydney-based analyst at UBS, to the Wall Street Journal; Afterpay isn’t the only company in the space seeing big growth, Shopify, Affirm and others are also having moments as customer behavior begins to shift. Wall Street Journal.
Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.