Image Credit: Affirm
Erik Howell and Elisabeth Magnor • 13 January, 2022

Infographic: Top BNPL Providers Demonstrate Solid Valuations

Observations on BNPL Valuations

  • The market space for BNPL providers is increasingly crowded
  • BNPL providers that have gained traction locally typically execute geo expansion strategies
  • Klarna and PayPal Credit are the most global, followed by Afterpay (called Clearpay in Europe) and Sezzle
  • Valuations correlate to geographic reach and size of the user base
  • Valuations are attractive and are increasing (e.g. UK-based Zilch’s valuation rose from $500M to $2BN in just eight months)
  • Australian-listed BNPL providers (e.g. Sezzle, OpenPay and Laybuy) have lower valuations compared to peers, likely driven by a combination of a boom of publicly listed BNPL companies, weaker than expected revenue performance, and a less favorable regulatory outlook

Outlook on Valuations

  • Investors will closely monitor regulatory developments for revenue impacts (which we will explore in a subsequent article)
  • We can expect further IPOs and M&A in the space
INFOGRAPHIC: Open Banking Tech Platforms

Infographic 1

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Please do not hesitate to contact Erik Howell or Elisabeth Magnor with comments or questions.