Think BNPL is just transactional? Think again – it needs to be a relationship for merchant success. Tips on how to optimize BNPL 2.0 ahead. BNPL delinquencies are up, and the impending recession will make matters worse before they get better. Klarna’s CEO is tweet-slapping that BNPL is a better option than expensive, high-interest credit cards. He’s right when appropriately used.
The Financial Brand has 30+ BNPL stats and data that will get your attention. Australia’s Finance Industry Association is carefully reviewing its BNPL Code of Practice as regulations loom. In Malaysia, Shopee SPay Later adds a monthly 1.5% transaction fee, while India’s Snapmint banks $21 million in financing. Meanwhile, Egypt’s One Finance launches BNPL services with $5 million in new funding. And there’s more…
BNPL 2.0: More than transactional, it’s a relationship product
Merchants tend to think about BNPL as a transactional tool for creating a more seamless and convenient purchase experience for their customers. That’s why the metrics merchants have traditionally cared about when it comes to BNPL — average order value and cart abandonment rate — tend to be measures of sales efficiency. Merchants need to take more control of the post-transaction BNPL experience and use it to create new customer engagement opportunities. Venture Beat
As buy now, pay later plans grow, so do delinquencies
Americans have grown fond of “buy now, pay later” services, but the “pay later” part is becoming increasingly difficult for some borrowers. As the industry racks up customers, delinquencies are climbing. Inflation is squeezing consumers, making it tougher to pay off debts. Some providers of buy now, pay later services see rising delinquencies as a natural consequence of growth but also an indication that inflation is hitting Americans most likely to use these services the hardest. AP News
Klarna’s Sebastian Siemiatkowski and the curious case of tweeting tech CEOs
Early last week, he set his sights on Martin Lewis after the financial journalist and founder of the MoneySavingExpert website criticized Deliveroo for adding Klarna as a payment option. Siemiatkowski tweeted: “Interesting @MartinSLewis! @Deliveroo should accept credit cards with up to 54% interest…But not Klarna that offers debit and interest-free credit? Curious, does your money-saving website make affiliate money from selling credit cards?” The debate is on. Retail Technology Innovation Hub
30+ Buy Now, Pay Later trends & statistics for banks in 2022
If any payments trend could be said to have ‘gone viral,’ it would be buy now, pay later. Here are top BNPL trends and statistics, including what people are buying using the fast-growing platform, how much they’re buying, generational breakouts of who uses BNPL the most and more. BNPL offerings will account for an impressive $680 billion in transaction volume worldwide in 2025, and usage is expected to increase by 20.7% between 2021 and 2028. The Financial Brand
As BNPL regulation looms, the finance sector will review its self-regulatory framework
The Australian Finance Industry Association (AFIA) launched an independent review of its own buy now, pay later Code of Practice, stress-testing the self-imposed rulebook as the federal government mulls tighter regulation over the booming sector. Drawn up with the help of industry participants like Afterpay, Zip, and Klarna, the Code of Practice is a set of opt-in rules designed to set minimum standards, including clear communication around fees and surcharges. SmartCompany
Shopee begin to impose 1.5% processing fee on SPayLater BNPL option
First made available to Malaysian consumers in January 2021, the Buy Now Pay Later option for Shopee’s SPayLater payment method allows users to pay for their purchases in the following month without any extra fee. However, that changed according to an update on its official website and Shopee Malaysia’s Help Centre. Customers that choose the BNPL option for their purchase will now have to pay an additional processing fee of 1.5% of the total order amount per month. Lowyat.net
BNPL platform Snapmint bags $21 mn in debt and equity funding
Snapmint has raised $21 million in a mix of debt and equity. The equity round was led by Prudent Investment Managers CEO & CIO Prashasta Seth. It also saw participation of nine Unicorns, Anicut Capital, Negen Capital, and Livspace founder Ramakant Sharma. Northern Arc Capital led the debt financing. Snapmint claims to have provided instant credit to over four million shoppers from over 27,000 pin codes in India. Its app has been downloaded eight million times. Business Today
Fintech firm One Finance rolls out BNPL service in Egypt
Integrated consumer financing platform One Finance has launched its buy now pay later service in Egypt. The company launched the service with an issued and paid capital of EGP100M ($5M) to enable consumers to adopt the BNPL model. The company offers a financing limit between EGP10,000 ($412) and EGP6M ($240,000). It also provides several payment schemes and installment plans that span up to 84 months. Electronic Payments International
Why is Amazon making me pay with Affirm?
Are you wondering why Amazon is asking you to make payments with Affirm? Not sure why that is happening. The collaboration between Amazon and Affirm allows specific Amazon customers to divide the full cost of goods totaling $50 or more into monthly installments. Fret not; you have reached the correct place. This article will help you understand why this is happening, and we will also answer some other critical questions. NextGen Hero
Buy Now Pay Later is a potential personal finance timebomb as household budget squeeze tightens
What is different this time is the scale and the breadth of the crisis. Households are getting hit from multiple directions. The prices of essentials are rising at a particularly rapid rate. Food-price inflation came in at 13.9% in the most recent figures from researcher Kantar. StepChange wants to see regulation brought in “as soon as possible.” This is a potential new year personal finance bomb, and the fuse has been lit. If it doesn’t go off, great. I will happily admit to being wrong. The Independent