Kiwi buy now pay later operator Laybuy has told merchants that use 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. 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. They became hugely popular during Covid when lockdowns meant people had to shop more online. 

But tougher economic conditions have put pressure on the sector which has also seen consolidation. 

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.