Over the last few weeks the buy now pay later (BNPL) industry has been an incredible place to be invested.
During this time a number of BNPL shares have recorded mouth-watering gains for their shareholders.
How are the BNPL shares performing?
Since this time last month:
- The Afterpay Ltd (ASX: APT) share price is up 16%.
- The Openpay Group Ltd (ASX: OPY) share price is up 33%.
- The Sezzle Inc (ASX: SZL) share price has gained 57%.
- The Zip Co Ltd (ASX: Z1P) share price has rocketed 143% higher.
What about the Splitit Ltd (ASX: SPT) share price?
Well, over the last 30 days the Splitit share price has not only underperformed its peers, it has also underperformed the S&P/ASX 200 Index (ASX: XJO) and its 3.8% gain.
During this time the Splitit share price has lost 10% of its value.
Why is the Splitit share price underperforming?
Splitit never really seemed to capture the imagination of investors in the same way that Afterpay and Zip did. This may be due to its different (or unusual?) choice of business model.
The BNPL industry is aiming to replace credit cards and is doing a great job at it. Credit card usage is declining as younger consumers turn away from them in their droves.
However, Splitit uses an existing credit card to turn a payment into smaller interest free instalments. This appears to be potentially missing out on arguably the most important BNPL demographic that don't want credit cards.
What else is weighing on its shares?
Also weighing on the Splitit share price this month could be news that its co-founder, Alon Feit, has been selling down his stake.
According to a notice, between 14 January and 9 February, Mr Feit sold 13,861,730 shares through on-market trades for a total consideration of approximately $20.3 million.
However, given how Mr Feit was voted off the board along with another long time director Mark Antipof late last year, it may not be overly surprising to see him selling down his stake.
