Buy now, pay later (BNPL) shares are dropping from the ASX like flies, but there could be one standing in the wings to take some of the deserted places.
Former ASX favourite, Afterpay officially left the exchange earlier this year following its takeover by Block Inc CDI (ASX: SQ2), formerly named Square.
ASX BNPL fans were hit with more news earlier this week when Sezzle Inc (ASX: SZL) accepted a takeover offer posed by Zip Co Ltd (ASX: Z1P).
While the news temporarily boosted the Sezzle share price, it's likely there will soon be one less BNPL stock on the Australian index.
Or will there? BizPay – a technology company providing instalment-style payment options for businesses – is planning to take on an initial public offering (IPO).
Here are all the details.
Will BizPay be the next ASX BNPL share?
BizPay is gearing up for a public listing, following in the recent steps of fellow financial disruptor, Beforepay Group Ltd (ASX: B4P).
As the name alludes, Beforepay provides users with early access to their salary.
Its share price has plunged 42% since its disastrous January float. Right now, stock in the company is trading at $1.10, a far cry from its IPO's offer price of $3.41 per share.
But BizPay assumably expects its own listing to prosper.
BizPay charges users between 1% and 4% to split payments into either fortnightly or monthly instalments.
The BNPL company's float could bring it access to additional capital, helping it to boost its business' abilities.
It's hoping to launch its ASX IPO in September, according to reporting by the Australian Financial Review.
The publication states BizPay counts Macquarie Group Ltd's (ASX: MQG) Macquarie Investment Management among its investors.
No doubt, all eyes will be on the company over the coming months to see if it will be the next ASX BNPL share.
As the AFR reports, BizPay's average invoice is worth around $12,300 and customers generally use the service 5 times each month.
It currently boasts 1000 customers and expects that to increase to 12,000 this year.
If all goes to plan, BizPay will be reporting positive earnings before interest, tax, depreciation, and amortisation (EBITDA) by the end of next financial year.
