PayPal's entry into the buy-now-pay-later space has rattled Australian firms like Afterpay, causing significant stock drops. Afterpay's share price fell by up to 12.4%, wiping A$2.5 billion off its market value in just two days. Rivals like Zip, Sezzle, Openpay, and Splitit also stumbled, losing up to 20%. Despite the turbulence, these companies remain optimistic, viewing PayPal's move as validation of the sector's potential. They believe the increased competition will ultimately benefit the industry. Investors, however, are recalibrating expectations as PayPal's massive U.S. customer base poses a formidable challenge.
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