The role of Buy Now Pay Later services in enhancing competition in the Australian economy

by Richard Denniss and Matt Saunders

The Australian retail, financial, and online advertising markets are all highly concentrated in Australia. As the last 20 years of attempts to increase competition in these sectors has shown, there is no silver bullet to address the market power of dominant firms in Australia. That said, there is clear consensus that new firms, and new entrants, have the capacity to disrupt existing arrangements and, in turn, increase the amount of competition and reduce prices for consumers. Conversely, barriers to the entry and growth of new entrants play a key role in maintaining the high degree of market concentration in key Australian industries.

Report commissioned by Afterpay

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