The world of retail finance has been shaken as Laybuy, a popular buy now, pay later (BNPL) service, has found itself in dire straits.

Laybuy, known for offering a zero-interest alternative to traditional credit cards, has allowed customers to spread the cost of purchases over six weeks with automatic, interest-free payments—provided those payments are made on time.

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As of 17 June, the company's Australian and New Zealand branches had been placed into receivership, leaving many customers and retailers questioning what this means for their finances and operations.

This Kiwi-founded company has been a go-to for many shoppers looking for a flexible way to manage their spending without incurring the high interest rates associated with credit cards.

However, the recent announcement on Laybuy's website has stopped all transactions.

Laybuy, a buy now, pay later service, was placed into receivership in Australia and New Zealand. Credit: Shutterstock

‘The UK-based entities and certain other entities in the Laybuy Group are not in receivership,’ the website read.

Purchases have ceased, and new sign-ups have been disabled, signalling a significant disruption in the BNPL market.

David Webb and Robert Campbell of Deloitte New Zealand have been appointed receivers over Laybuy Group Holdings Limited and Laybuy Holdings Limited.

Meanwhile, Glen Kanevsky and Jason Tracy of Deloitte Australia are overseeing the receivership of Laybuy Australia Pty Limited.

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It's important to note that Laybuy's UK-based entities and certain other entities within the Laybuy Group are unaffected by this receivership.

Despite this, the company has warned that its services will be unavailable for an undetermined period.

‘There might be temporary interruptions to some systems, or we might need to go offline for a short period of time,’ it wrote.

‘We appreciate the receivership of the companies will be frustrating, and the receivers are rapidly assessing the options that may be available.’

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Laybuy has cautioned that customers may experience temporary system interruptions or even find the service offline temporarily.

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Similarly, another Australian company that manufactures wellness products for mothers and handcrafted fudge has entered administration and receivership.

KPMG Australia has been appointed receivers, with KordaMentha taking on voluntary administration. For further details on this development, click here.

Key Takeaways

• Laybuy, a buy now, pay later service, has been placed into receivership in Australia and New Zealand.
• Payments with Laybuy were interest-free if made on time, and the service allowed the cost to be spread over six weeks.
• Receivers have been appointed, affecting the operations of Laybuy Group Holdings Limited and Laybuy Holdings Limited, with service interruptions expected.
• Customers with existing Laybuy credit agreements are still required to make their scheduled payments despite the company's financial issues.

Have you been affected by the Laybuy receivership? Do you have any tips for managing finances when a BNPL service falls? Share your experiences and advice in the comments below.

 

[Phantom36]

It's not an essential service, live within your means, if you can't afford to pay for it now, wait until you can.

 

[siameezer]

It's not an essential service, live within your means, if you can't afford to pay for it now, wait until you can.

There is NOTHING wrong with lay-by at all. Our parents did it, but then in those days stores actually offered the service and so many don't now. It is way more responsible to lay-by than to put the purchase on a interest-charging credit card.

 

[edukas]

Buy now - pay later - why do you think it's crashed? - sooner or later it was bound to happen - some people cannot help themselves - why on earth would you go into debt and financial hard ship over gratification spending - not brought the same way as I was.

 

[siameezer]

Buy now - pay later - why do you think it's crashed? - sooner or later it was bound to happen - some people cannot help themselves - why on earth would you go into debt and financial hard ship over gratification spending - not brought the same way as I was.

Huge assumptions there. It is no different to lay-by except you get the goods immediately. I needed a new mask for my CPAP machine and did not have the funds, but I could easily do it over four interest-free payments. If the company had had lay-by I would have utilised that, but they didn't so I did the next best thing. It is not all gratification spending at all.

 

[Ezzy]

Huge assumptions there. It is no different to lay-by except you get the goods immediately. I needed a new mask for my CPAP machine and did not have the funds, but I could easily do it over four interest-free payments. If the company had had lay-by I would have utilised that, but they didn't so I did the next best thing. It is not all gratification spending at all.

Yes CPAP Masks are very expensive & unfortunately have a short life span, as l can attest to. If people can do as you have done it makes sense to me.

For many people CPAP Machines are a necessity for life & something we would go without if we could but we cannot. Masks are just part of their use, they also need maintenance occasionally.

 

[Ebby]

There is NOTHING wrong with lay-by at all. Our parents did it, but then in those days stores actually offered the service and so many don't now. It is way more responsible to lay-by than to put the purchase on a interest-charging credit card.

l remember when we lived up the Gold Coast going into Kmart and seeing two little abstract paintings l wanted but just didn't have enough money for.l wanted to layby them but it was closed. l hide them under other things but when l went back the next day they were gone.l hope laybys keep going as they are so handy.

 

[muzza78]

Before Layby we had appro where you could take the item home and try it then return within 24 hrs if it wasn't what you wanted or didn't suit then they brought in time payment where you paid it off over 3 months at the cash price

 

[NotNats]

Ahhhh the good old days where Pay As You Go was called HP (Hire Purchase) and most places charged you up to 29% interest.