Shares of Afterpay an early adopter of the buy-now-pay-later consumer lending model, are being heavily sold for a second consecutive trading day after credit card giant Visa unveiled plans to enter the market.

The stock was down as much as 10 per cent in early trading on Monday, after suffering a similar fall late on Friday, wiping a combined $1.38 billion off the firm's market capitalisation since Friday morning. By 11.45am AEST, Afterpay shares had regained some lost ground to be 4.8 per cent lower at $23.88.

The company released a statement on Sunday in response to the Visa development, saying it was confident its 'unique' offering left it in a strong position despite the imminent threat from the financial giant

"New ideas are being launched on a consistent basis, however we continue to be unique in our customer and merchant-focused offering," Afterpay said.

"The reason Afterpay has resonated with so many customers and retailers is that we’re different to traditional credit models and products, which customers are moving away from."

More to come

Reuters