Payment Financial Technologies Shares Plunge Over 40% in a Week Amid Market Selloff

Payment Financial Technologies, formerly known as Credit Shop, has experienced a sharp market downturn, with its shares plunging over 14% on Wednesday and accumulating a loss of more than 40% within a single week.

Following a positive trend since the beginning of 2025, the fintech firm, which operates a point-of-sale Buy Now, Pay Later (BNPL) platform founded in late 2014 and publicly traded on the Tel Aviv Stock Exchange since October 2021, began showing weakness in February 2026. The severe drop prompted an inquiry from trading authorities and led the company to issue an unusual official statement to the stock exchange. The firm clarified that, to the best of its knowledge, no unusual corporate event has occurred and its business operations are proceeding as usual.

Market participants are weighing several potential explanations for the dramatic slump in the absence of negative financial reports, corporate developments, or canceled contracts. Due to its low market capitalization and limited liquidity, the abrupt exit of a prominent investor or forced liquidations by brokers on leveraged positions can generate heavy selling pressure. This dynamic triggers automated stop-loss orders and creates a domino effect on the stock price.

Additional industry-wide factors include the inherent sensitivity of the BNPL model to high interest rates and financing costs, which erode brokerage margins and elevate default risks among end consumers. Because the company relies on selling loan portfolios to external financial institutions, any market apprehensions regarding tighter credit lines or shifting financing agreements can lead to a rapid repricing of operational risks.

Despite the current volatility, 2024 marked the strongest year in the company's history, capped by robust financial reports for the fourth quarter. December 2024 stood out as the strongest month on record, with fourth-quarter sales surging by approximately 48% compared to the same period in 2023. Gross profit grew by about 93%, operating profit jumped roughly 197%, and net profit soared by 233% year-over-year.