Klarna (KLAR) will debut on the New York Stock Exchange on Wednesday, pricing its IPO at $40 per share. Is the Buy Now, Pay Later (BNPL) space starting to look a little cramped in the United States?

Zip Co (ASX: ZIP.AX) US CEO Joe Heck comes on Market Catalysts to talk about the type of competition seen in the US landscape for BNPL. The Australia-based fintech company is currently planning a dual listing on the Nasdaq.

Also catch Yahoo Finance executive editor Brian Sozzi's full interview with Affirm (AFRM) CEO Max Levchin.

To watch more expert insights and analysis on the latest market action, check out more Market Catalysts.

Video Transcript

00:00 Speaker A

Joe, do you see the US market as big enough for all of these various players? I mean, what do you see as the sort of total adjustable market here? And do you see the existing players sort of operating in their own lanes, if you will? Do you see market consolidation? I mean, how do you see the market developing here?

00:23 Joe

It it look, it's a big market and um I would say the US is still in the early days. If you contrast the US to other more mature markets, US is at, you know, two to 3% of total commerce here that are using BNPL. Um, you know, about 6% of e-commerce and contrast that to like Australia, you're in the 15% um range. Uh I think there's there's areas in Europe that are closer to 20. So I would still say there's this familiarity with the product that uh we're still in the early days on. So we look at the addressable market as over 100 million US consumers could benefit from this simplified product structure. and for for zip customers, um that uh doesn't even really get into any potential cannibalization of credit cards, which I think you're seeing um that that becomes really attractive in this next generation that's really trying to avoid debt and avoid kind of the revolving potential debt trap that that they can get caught in in a credit card.  Related Videos

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