A director of Queensland-based buy now pay later provider, Pay It Later Pty Ltd, has filed an application in the Federal Court to wind up the company.

Sydney-based entrepreneur, Thomas Hegarty, who owns a major stake in the business through a family investment vehicle, lodged the application in the NSW registry of the court on 1 April.

A hearing into the wind-up application is scheduled for 4 May.

Pay It Later offers buy now pay later services to shoppers purchasing goods from around 500 micro merchants through online or mobile platforms.

Not much is known about the financial performance of the company that does not appear to have distribution deals in place with any national retail chains.

Pay It Later levies a 5.9 per cent variable fee or a flat 1.9 per cent fee on merchants for transactions financed through its service.

The business also charges shoppers a late fee of $10 if they are more than a day late making a repayment.

According to Hegarty’s LinkedIn profile, the business was founded in June 2019.

ASIC records show that Pay It Later has one other director – Brisbane businessman Donald Graham.