(Reuters) – Australia’s BNPL (buy now, pay late) shares fell on Tuesday following the launch of Apple’s pay later service. This was at a time where rising interest rates and stubborn prices have created a weak global fintech sector.

BNPL companies listed in Australia, such as Zip Co, Sezzle Inc and Humm Group, along with those exposed to the sector, like Openpay Group and Humm Group, have seen double-digit increases to their shares this year. This is similar to what has happened elsewhere around the globe.

They fell from 3.1% to 14.4%, as Apple’s entry on the BNPL marketplace Tuesday only added to the suffering caused by an inhospitable economic environment that discourages consumers from making discretionary purchases.

Kunal Sawhney is chief executive officer, Kalkine Group.

Klarna, the Swedish fintech company, was laid off 10% last month. A recent capital raise revealed that there has been a significant valuation decline.

Afterpay was bought by Jack Dorsey’s Block for $32Billion. In the six months that ended December, bad debts increased more than twice year-on-year.

Adding to the woes of the BNPL sector, Australia’s central banks surprised the markets Tuesday by announcing a 50 basis-point rate increase. This was twice the expected level and the highest in 22 years. The central bank also indicated that it was stepping up tightening in order to combat rising inflation.