Buy now pay later operator Laybuy suspends payment service

Labybuy has suspended its services.

Kiwi buy now pay later operator Laybuy has told merchants using its service its payment offering is currently suspended.

The company sent out a notice today stating: “Laybuy’s services are currently suspended, including all payment options.”

It added: “We don’t currently have a resolution timeframe but will ensure you are immediately notified. Thank you for your patience.”

Laybuy’s website said it was “currently unavailable while undergoing maintenance and will be back up and running shortly”.

When the Herald contacted Laybuy founder Gary Rohloff, he said he was busy trying to resolve the issue this afternoon and was not immediately able to say more.

Buy now pay later services allow shoppers to pay for a purchase in instalments while the merchant gets paid upfront.

The services became popular during Covid when more people shopped online due to lockdowns.

But tougher economic conditions have put pressure on the sector.

In January last year, Laybuy announced plans to delist from the ASX after its share price slumped.

And in March last year it announced staff layoffs as it struggled for profitability.

A Canstar survey found only 12 per cent of Kiwis surveyed had BNPL debt in March last year, down from 19 per cent in 2021.

Rohloff, a former retailing stalwart who has managed well-known brands Number One Shoes, Warehouse Stationery and Ezibuy, founded Laybuy in 2017 after a conversation with family about a safe and easy alternative to credit cards to buy a pair of jeans.