Huge success is already priced into the valuations of buy now, pay later players according to top fund managers.

Ms Allfrey also warned investors that the sector has been propped up by JobKeeper and JobSeeker government payments to its customer base of younger generations. The payments are set to be withdrawn from July and September.
Blackrock’s Charlie Lanchester said the sector is too under-developed.  Louie Dovis
According to Allfrey, Afterpay is a great enabler for retailers as it drives higher in-store and online sales, but the popularity of credit cards amongst older generations is not going away .
Matt Williams, a portfolio manager at Airlie Funds Management, said buy now, pay later is a great payments concept but the sector is too frothy.
“We haven’t seen these businesses perform through a really bad economic period. I’d be cautious at these sort of record-high share prices.”
The fund manager tipped further merger and acquisition activity in the sector as larger global payments players seek a share of the addressable market.
Mr Williams named Afterpay as a potential takeover target for $US183 billion ($263 billion) global payments giant PayPal, with both businesses acquiring customers at online checkouts.
Charlie Lanchester the managing director of Australian equities at Blackrock said the sector was too underdeveloped for the asset manager.
“We steer clear of companies that don’t make a profit. That has actually kept us away from some of these companies, which has cost us in the short term, but we’ll stick to our process for now,” he said.
In May the market valued Afterpay higher than Westfield shopping centre operator Scentre Group, with the entire buy now, pay later, loss-making sector now valued at more than $16.5 billion.