QuickFee has joined the growing list of buy now pay later providers cutting back operations in the face of mounting losses.

The company announced yesterday that it will “cease all BNPL operations” in the United States and focus on its core operation of “helping professional firms get paid faster”. 

QuickFee’s core business is a form of receivables finance for accountants, lawyers and other professional services firms. It launched locally in 2009 and entered the US market in 2016.

In the past few years it has added a payment processing service, accounting services and a buy now pay later product.

At the end of June, the company had 700 active firms on its book in the US – an increase of 39 per cent over 12 months. In Australia active firm numbers grew 1 per cent to 495.

Investment spending on expansion has been a contributor to the company’s growing losses. It reported a loss of A$13.5 million for the year to June, compared with a loss of $8.5 in 2020/21. Both the Australian and US divisions lost money.

Revenue grew 23.5 per cent to $10.8 million but marketing expenses doubled, general expenses grew 42.4 per cent and impairments were up 49.5 per cent.

QuickFee’s problems have been compounded by instability in senior management ranks. Chief executive Eric Lookhoff resigned in August, after a little over a year in the job.

The company said its Australian BNPL business, which is offered through an arrangement with Jim’s Group, will continue.

Other BNPL providers that have had to consolidate include: Zip, which closed its Singapore business and is getting out of the United Kingdom; Sezzle, which is getting out of India and Brazil, and scaling back in Europe; Openpay, which shut down operations in the US and the UK; and Laybuy, which tried to sell its UK business, without success, and is now cutting its headcount by one-third.