SEA flies the BNPL flag as crypto tries insurance on for size

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Hello there,

When it comes to dealing with problems, the present never feels like the right time.

So what could be sweeter than enjoying retail therapy without immediately facing the pain of paying up? Unfortunately, even when we procrastinate making payments today, it’s still our problem tomorrow.

The thriving buy now, pay later (BNPL) industry, however, suggests we have little sympathy for our future selves or regard for our finances.

With inflation going up faster than some people’s blood pressure and a recession looming, will Asian consumers keep leaning on BNPL? Quite likely as it turns out – or at least that’s what regional BNPL players are hoping they’ll do, as Melissa discusses in this week’s Big Story.

For those who have bleaker outlooks, insurance is probably your preferred financial instrument.

In our second Big Story this week, Deepti explores a relatively new form of decentralized finance (DeFi) insurance, where premiums are calculated on a “decentralized basis” rather than being determined by an insurer. Given how prone crypto assets are to a free fall, getting such a product could be like strapping on a parachute before skydiving.

Meanwhile, in this week’s Hot Take, I discuss how Australian neobank Volt went from being first to going bust, shuttering after it ran out of runway. What went wrong for the company? And while we’re at it, are Southeast Asia’s digital banks doing any better?

– Qishin

THE BIG STORIES

Image credit: Timmy Loen

1️⃣ BNPL struggles amid global recession – except in Southeast Asia
Rising interest rates, inflation, and a looming recession have cast doubt on the viability of the BNPL model. But SEA’s players may be an exception.

2️⃣ Terra, Celsius raise prospects for crypto insurance
Investors are looking to put their money behind crypto insurers who can cut through the red tape of the traditional insurance sector.

THE HOT TAKE

Australia neobank Volt pulls the plug on banking ambitions

NEWS YOU SHOULD KNOW

FYI