Grant Halverson: Was the buy now pay later fintech revolution ever much more than smoke and mirrors?

<p>Just a couple of years ago there was huge excitement about buy now pay later (BNPL) companies. Via smartphone applications, or apps, their buy now and pay over installments service0 was drawing in consumers and worrying banks.</p><p>The high water mark saw US payments company Square, now Block, <a href="https://www.interest.co.nz/news/111560/buy-now-pay-later-service-provider-afterpay-set-be-acquired-jack-dorseys-square-major" target="_blank"><strong>strike a US$29 billion deal</strong></a> to acquire Australian BNPL service provider Afterpay in August 2021.</p><p>But 18 months on the picture is very different with several BNPL companies in serious difficulties or shutting up shop. Latitude Financial Services has just <a href="https://www.latitudefinancial.com.au/about-us/media-releases/latitude-closes-its-bnpl-service-in-australia-and-new-zealand.html" target="_blank"><strong>announced</strong></a> its pulling the plug on Genoapay, its BNPL service. Openpay went into receivership, Humm pulled out of the New Zealand market and NZ company Laybuy has <a href="https://www.stuff.co.nz/business/131258269/laybuy-how-one-companys-share-price-fell-from-2-to-3c" target="_blank"><strong>delisted</strong></a> from the Australian Stock Exchange.</p><p>So what has gone wrong with the BNPL sector? And did its substance ever really match the hype swirling around it?</p><p>To discuss this we spoke with Melbourne-based Grant Halverson, CEO of retail banking and payments consultancy McLean Roche, in the latest episode of interest.co.nz's <a href="https://www.interest.co.nz/of-interest-podcasts" target="_blank"><i><strong>Of Interest podcast</strong></i></a><i><strong>.</strong></i></p><p>Halverson notes that BNPL services, in one form or another, have been around for centuries. The new twist was putting an app on a phone. He notes the sector, which both the NZ and Australian governments are <a href="https://www.interest.co.nz/personal-finance/118273/buy-now-pay-later-sector-be-brought-under-credit-contracts-and-consumer" target