The “buy now, pay later” operator Laybuy is discontinuing the payment service

New Zealand-based buy now, pay later operator Laybuy has informed merchants using its service that its payment offering is currently suspended.

The company sent out a notice today saying: “Laybuy services are currently suspended, including all payment options. We do not currently have a timeframe for a resolution, but will notify you promptly. Thank you for your patience.”

Laybuy’s website stated that the service was “currently unavailable due to maintenance and will be back shortly.”

If that Herald When I contacted Laybuy founder Gary Rohloff, he said he was busy solving the problem this afternoon and could not say more immediately.

Buy now, pay later services allow shoppers to pay for a purchase in installments while paying the merchant up front. These services became very popular during the Covid pandemic when lockdowns forced people to shop online more.

However, more difficult economic conditions put pressure on the sector and consolidation occurred.

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

And in March last year, the company announced layoffs due to profitability problems.

According to a survey by Canstar, only 12 percent of New Zealanders surveyed had BNPL debt in March last year, down from 19 percent in 2021.

Rohloff, a former retail professional who has run 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 buying jeans with a credit card.