It’s official. Humm is bailing on the UK market, citing macroeconomic challenges. Retailers see BNPL sales growth and repeat business, and Vagaro shares a retailer’s success story. Sugar has a sweet tale about its “save now, buy later” business model. Japan’s Smartpay launched direct BNPL payments from bank accounts. It seems “health care now, pay later” is now a thing as millennials help drive growth.
Researchers say 75% of GenZ will use BNPL by 2025, and large retailers are jumping on board. Actyv.ai brings its AI-assisted BNPL B2B software service to Indian insurance provider Ratnaafin. Singapore’s Storepay is the top BNPL service in Mongolia, with over 500,000 users and 2,000 merchants, and it plans to launch in Indonesia soon. Who knew?
Exclusive: Australian BNPL Humm “retreating from England” as market worsens
Following the departure of Zip and Openpay, Humm is the latest Australian buy now, pay later provider to pull back on expansion plans. ASX-listed Australian BNPL provider Humm told investors it will “prudently retreat from broader UK expansion” after 12 months in the market. The company explained that while Great Britain has a “large total addressable credit market,” the decision was made due to a “more challenging macro environment.” AltFI
Retailers say BNPL boosts sales; consumers say it keeps them coming back
Experts estimate BNPL options increase the likelihood of a sale by 20% to 30% and boost the average ticket size by up to 50%. Both estimates mean massive revenue increases for merchants offering these options. A recent survey found that nearly 70% of customers spend more when using a BNPL service, a massive incentive for retailers. Increased merchant acceptance is, in turn, fueling greater adoption among consumers, especially younger generations. PYMNTS
Buy now, pay later models may be the solution your business needs to stay ahead
BNPL allows companies to attract and retain customers while third-party companies make money. Consumers like that they eliminate interest while still getting immediate access to what they want. BNPL plans account for just 5% of all e-commerce spending. But because the plans can be win-win-win, they are the fastest-growing online payment method, increasing nearly tenfold from 2019 to 2021. Vagaro decided to do it in-house and pay clients for customer purchases ourselves. Entrepreneur
The story of Sugar: Why a company pivoted from buy now pay later to save now buy later
Founders Dylan Tan hailing from Malaysia, and Vishvesh Suriyanarayanan, from India, told Fintech News Malaysia they started Sugar with the vision to provide an alternative solution to the BNPL model, which is their “Save Now and Buy Later” (SNBL) program. It’s a novel concept. A Juniper Research report predicts that BNPL users will surpass 900 million globally by 2027, increasing from 360 million in 2022. Digital Transformation
Smartpay users can now make BNPL payments directly from their bank accounts
Japan-based Smartpay is launching Smartpay Bank Direct, a tool that offers users a new way to pay for their online installment purchases. Smartpay users can pay for their buy now, pay later (BNPL) purchases directly from their bank accounts. The move is made possible by Smartpay’s partnerships with 67 banks and makes Smartpay one of the first consumer finance companies to leverage Japan’s open banking ecosystem. Finovate
Get care now, pay later?: Healthcare sees a surge in financing platforms for patients
Many are turning to a modern twist on the layaway plan: buy now, pay later. But while platforms like Afterpay and Affirm were initially built to take the sting out of online shopping, these new financing options are beginning to creep into the world of health care. “Buy now, pay later is a small fraction of the health space, but it is exploding,” said Jay Zagorsky, an economist at Questron School of Business at Boston College. Stat News (sub req’d)
Millennials drive demand for BNPL as healthcare payment option
Relatively younger patients, who tend to be less financially secure, are more likely to have used a payment plan to pay for healthcare overall than older generations: 11% of millennials and 10% of Gen Z patients reported doing so, but just 2% of baby boomers and seniors said the same. By economic demographic, 13% of patients living paycheck to paycheck with issues paying their bills have used a payment plan, compared to 3% of those not living paycheck to paycheck. PYMNTS
75% of Gen Z expect to use buy now, pay later by 2025: 7 retailers are leading the way
There are two ways a retailer typically partakes in a buy now, pay later option. The retailer often partners with another service, such as Affirm, Afterpay, Klarna or PayPal. A few retailers, such as Best Buy, offer their own version of the service. Retailers offering the program include Amazon, Best Buy, Dick’s Sporting Goods, Kohl’s, Target, Wayfair, and Home Depot. Albany News 10
Actyv.ai and Ratnaafin partner on B2B buy now pay later
The new collaboration brings together Actyv.ai’s artificial intelligence (AI)-powered enterprise Software-as-a-Service (SaaS) platform that includes B2B BNPL and Ratnaafin’s lending, insurance broking and other financial services, the companies said. The firm will extend the B2B BNPL offering to its more than 3,000 clients, to which it already offers small- to medium-sized business (SMB) finance, home loans and corporate loans, the release said. PYMNTS
AscendEX lists Storepay Global, a leading buy now pay later service
Storepay allows users to buy products and pay for them over time. Through their partnerships with over 2,000 merchants and quick, easy-to-use platform, users can sign up in minutes without impacting their credit score. Storepay is the top BNPL service in Mongolia, with over 500,000 users and will launch in Indonesia within months. Users receive 1% of what they spend in $SPCFIN tokens and can use $SPCFIN and fiat currencies to purchase real-world goods and services. Ambcrypto.com