Another one bites the dust-Art Money is the latest Australian BNPL outfit to fail image credit shutterstock

Art-based Australian BNPL platform, Art Money, has been forced to halt business operations. From 8 June, new clients have not be able to apply for finance, and existing clients are unable to make new purchases. Art Money founder and CEO, Paul Becker, says that all galleries, artists and art sellers have been paid, or will be shortly.

Art Money: 8,500+ clients

“I’m proud of what we’ve achieved so far,” said Becker. 8,500+ clients have used Art Money to enable or empower their art buying. 2,000+ galleries from 50 countries have partnered with Art Money. 20,000+ artworks have been purchased with Art Money. Over 1,000 purchases from auction houses including Christie’s, Sotheby’s and 40 others have been made.”

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

To date, Art Money has raised $10m in equity investment, It also secured $100m debt finance for art purchases.

Becker added: “We built the world’s only global art fintech, solving a real art market problem and increasing access to art by empowering the 98% of art purchases under $1m.”

However, the firm never broke even, let alone turned a profit.

$5m needed to hit profitability claims founder

“$5m additional equity investment would take us to profitability by end 2025,” said Becker. He said the firm faced a perfect storm of related events

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“Art market contraction reflecting the global economic downturn, impacted sales growth, although we have grown in every quarter except one since inception. A lack of growth capital as equity markets dried up. We still raised however less than our targets. Interest rates compressing margins and reducing profitability in the short term, albeit we still have strong unit economics (we make money on each sale).

“We need to recapitalise the business. It’s been bootstrapped since inception and we’ve achieved a lot with a little. Whilst the model is now proven, and common in every other industry except art, the business cannot go to the next stage and realise its potential without sufficient equity capital.”

Given the large number of Australian BNPL failures and the lack of profits across the entire BNPL sector, there will be many who question his claim that the model is proven in every other industry.