Despite the threat of persistent inflation and rising interest rates hanging over the sector's head, the S&P/ASX All Technology Index (ASX: XTX) managed to eke out a 3.72% return out of 2021.

But of course, some of those ASX shares fared better than others.

We've already taken a look at the 5 best-performing ASX tech shares from last year. 

Now it's time for the dreaded worst performing stocks from 2021.

Whether it's due to governance scandals, financial downgrades, industry consolidation, or COVID-19 impacts, these businesses have copped the proverbial cold shoulder from investors as the year wore on.

Here are the 5 worst tech shares from 2021 from the ASX All Tech index:

Foreign BNPL businesses bleeding badly on the ASX

Buy now, pay later (BNPL) started 2021 as the hot sector with limitless potential.

While that might still be the case for the concept, investors have cooled on BNPL shares since the revelation in August that US giant Block Inc (NYSE: SQ) would wholly acquire market leader Afterpay Ltd (ASX: APT).

That's been the turbulent background for New Zealand's Laybuy Holdings Ltd's (ASX: LBY) listed life since floating on the ASX in September 2020.

This ASX tech share landed on the bourse with high hopes and an initial public offer price of $1.41 per share.

But after a shocking 82% fall over last year, Laybuy stocks closed 2021 at 24 cents.

At the time of listing, founder and managing director Gary Rohloff told The Motley Fool his company's payment cycle would be its competitive edge.

"We're the only buy now, pay later provider in the market that offers a weekly payment option," he said.

"We're very simply weekly pay in 6 [payments]. We own that weekly space in New Zealand, I'd argue we own it in Australia, and we definitely own it in the UK."

Another BNPL provider, New York's Splitit Ltd (ASX: SPT), was not far behind Laybuy as the worst ASX tech share of 2021.

The stock price had plunged an eye-watering 81% over the year, leaving it with a market capitalisation of just $117.34 million.

Coverage is scarce on the business. But according to CMC Markets, at least Canaccord Genuity analysts currently rate it as a "strong buy" based on its bargain share price of 25 cents.

'The market appears to have lost short-term confidence'

Microcap Bill Identity Ltd (ASX: BID) saw its share price fall more than 79% over 2021, leaving it to say goodbye to the year at 24 cents.

The Melbourne business automates bill payment processes through its cloud software.

Rounding out the worst 5 honour roll are Damstra Holdings Ltd (ASX: DTC) and Nuix Ltd (ASX: NXL), which saw their shares shrink 78% and 73% respectively.

At its annual general meeting in November, Damstra's language was far from positive.

The workplace management software company stated "the market appears to have lost short-term confidence" in the business and that it is sharing "the disappointment in [its] share price performance with other investors".

Yikes.

Nuix's problems have been all over the front page of not just financial publications like The Motley Fool, but also mainstream newspapers.

After a much-hyped listing in December 2020, the shares peaked at $11.86 in late January.

It's all been downhill since for this ASX tech share, with a series of governance scandals, alleged insider trading, and financial underperformance. In November, Nuix's own shareholders started suing it.

The stock farewelled the forgettable year at $2.20.

The post 5 worst ASX 200 tech shares of 2021 appeared first on The Motley Fool Australia.

The Bill Identity Ltd (ASX: BID) share price is falling today after the company announced a master services agreement with energy retailer Simply Energy for its New Zealand customers.

At the time of writing, the Bill Identity share price has slumped 3.4% to 83.5 cents per share.

A quick take on the companies

Bill Identity is a technology company that automates the bill-paying process through cloud computing. The company provides utility bill expense management solutions and is spread across Australia, New Zealand, the United States, the United Kingdom, and Europe. 

Simply is one of Australia's largest energy retailers with around 700,000 Australian accounts and is wholly owned by French energy company ENGIE. It will initially only use its current arrangement for New Zealand customers.

What the deal means

Bill Identity will provide Simply with its cloud-based bill paying software, the Utility Bill Portal solution.

The deal was reached after a successful pilot program and has an initial three-year term. It will provide a step-change in service to "a large number" of Simply's commercial and industrial customers in New Zealand.

Bill Identity describes its Utility Bill Portal software as a fully-orchestrated robotic process automation (RPA) business customer platform for energy retailers, which enables their customers to have "easy access to utility bills anywhere, at any time".

By automatically capturing and validating invoices and meter data, its clients can streamline their accounting and payment processes. 

What management said

Bill Identity managing director Guy Maine welcomed the deal, saying:

We are extremely excited to be providing Simply with our Utility Bill Portal solution.

The solution has been designed to deliver significant cost-to-serve economies, and the data-driven RPA experience uses intuitive simplification that is intended to drive increased engagement and satisfaction, thereby unlocking ongoing value for large multi-site energy customers. 

Bill Identity share price snapshot

The Bill Identity share price and its relative transformation under the ASX ticker Bill Identity has been well publicised. But since reaching a high of $1.60 in February 2019, it's had a series of volatile jumps and falls to its current price of around 84 cents.

It's down 84% against the technology sector over the past 12 months and has lost more than 30% of its share price value in 2021 so far.

The post The Bill Identity (ASX:BID) share price is slipping today. Here's why appeared first on The Motley Fool Australia.