According to The Financial Brand, BNPL is evolving to BNPL 2.0 with further growth expected. PYMNTS takes a look at rankings for the top 10 BNPL apps. BNPL was all that talk at Money 20/20 this year as it ups its role in mainstream payments. Some analysts and BNPL companies welcome credit reporting to enhance stability for the industry and protection for consumers.
Payla’s founder talks about responsible BNPL and what that looks like. The new Zip Card enables buy now pay later in-store, anywhere Visa cards are accepted. UK’s Tymit taps retail investors for $23 million for new merchant product development and growth. Akulaku PayLater partners with Alipay to expand BNPL in Indonesia. Juniper Research expects BNPL growth to continue, fueled by the rising cost of living.
5 Payment trends to watch in 2023: BNPL’s future may be more nuanced
Insider Intelligence argues the upstart will move from “BNPL 1.0 to BNPL 2.0.” While growth will continue in BNPL as additional players get into the business and more consumers try it, the growth rate in users will flag significantly. On the other hand, Insider Intelligence says BNPL dollar volume growth won’t slow as sharply due to rising spend per user. “BNPL payment volume is expected to increase 25.5% year over year in 2023 compared with 77.3% year over year in 2022,” the firm stated. The Financial Brand
BNPL app provider ranking is same old same old — until it’s not
Locked in a BNPL celebrity cage match at No 1 for another month it’s Affirm and Klarna ruling the installment payments roost. Hanging on at No 2 yet again is Afterpay. Further proving our opening thesis, Zip retains its No 3 spot for another cycle. Need more proof? We then refer you to the Paidy app, sticking at No 4. And just where we left it last month, we find Sezzle occupying the No 5 spot. As we’re known to say, staying in the Top 5 is like a double win. PYMNTS
Money 20/20: Can Buy Now, Pay Later surpass the credit card industry?
Buy now, pay later is the fintech-driven consumer credit option threatening to disrupt the traditional credit card market. And while fintechs have typically sought to portray themselves more as potential partners to legacy financial services, speakers at Money20/20 embraced the idea that BNPL is just a better model for consumer credit. Afterpay’s Paige Fitzgerald said “95% of Afterpay transactions are paid on time and 98% incur no late fee.” BizTech
Credit reporting will level the playing field for Buy Now, Pay Later
BNPL is surging in popularity, while consumer interest in credit cards is declining, especially true among the younger generation: only 2% of credit cards in the UK are owned by 18–24 year olds, whereas almost half of young adults will have purchased something using BNPL in the last 12 months. A lack of regulation has facilitated its fast growth, but has also exposed the industry to reputational damage. All that is about to change. Credit reporting is one of the most essential steps towards achieving this. Maddyness
Buy Now Pay Later. What’s now and what’s later?
The BNPL providers who were already in a challenging position will now have to compete with much bigger fish. However, with the rising inflation and all the uncertainty of the economy, it’s hard to say now whether these launches will become a true disrupt-the-industry moment or whether they will jeopardise the state of existing leaders of the BNPL market. To sum it up, BNPL is more likely here to stay, despite the challenges of slowing economic growth and control from regulators. Maddyness
What responsible BNPL means nowadays and how new regulations may impact the ecosystem
Traditional BNPL products like the ones so popular in Germany for decades are primarily focussed on consumer protection. They are not even predominantly used for instalments; more than 90% of all BNPL transactions in Germany are paid back in one single payment, less than 21 days after delivery. BNPL products have become mainstream payment methods in so many countries. BNPL has already been very successful in its traditional markets and will continue to grow there. The Paypers
BNPL: Zip Supports Buy Now Pay Later Adoption with Zip Card
BNPL firm Zip Co announced the availability of Zip Card, issued by WebBank, the newest buy now, pay later product offered through its portfolio. As consumers look for BNPL options in brick-and-mortar retail, the Zip Card extends the ‘Pay-in-4*’ functionality offline in a convenient physical card format.With a quarter million waitlisted customers, the card is now available in the US, enabling consumers to ‘Pay in 4 nearly everywhere Visa is accepted. Crowdfund Insider
Tymit raises $27M to launch white label BNPL solution
UK-based buy now, pay later company Tymit raised £23 million ($26.7 million) in a Series A round led by Frasers Group, which operates British retail brands including Sports Direct, Jack Wills, GAME, Flannels and Evans Cycles. Tymit will use the funding to accelerate its product development and support the launch of its white-label BNPL proposition for merchants. The company will also continue to invest in its direct-to-consumer consumer solution. PYMNTS
Akulaku PayLater becomes first BNPL wallet in SE Asia to partner with Alipay+
Akulaku, a banking and digital finance platform based in Southeast Asia, reports that its Akulaku PayLater buy now pay later solution is now available to Indonesian consumers at Alipay+’s global merchants. The companies are hoping to bring financial services to underbanked and unbanked communities. Akulaku and Alipay+ say they are looking at further extending their partnership to other markets in Southeast Asia. Retail Technology Innovation Hub
Buy now pay later spend to accelerate, fuelled by cost of living crisis
Consumer spending using BNPL platforms will reach $437 billion globally in 2027, according to Juniper Research, rising from $112 billion in 2022. This will be driven by escalating financial pressures from the rising cost of living, increasing the demand for cheap credit solutions and creating a potential debt trap. A lack of credit checks poses a considerable market hurdle, as consumers are being approved for larger loans than they are actually able to repay. Retail Technology Innovation Hub
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