Zilch will soon report BNPL loans to UK credit bureaus even as pay later loans rise among all UK consumer demographics. Afterpay bails from BNPL loans in New Mexico, partly due to fee caps imposed by the state. Alibaba and Splitit partner to extend BNPL to EU customers, while Ingenico adds Klarna to its merchant payment platform options.
Credi2 and Visa will offer a white-label solution for cardholders to make BNPL payments via Visa credentials. UK research shows BNPL users are twice as likely to default on a loan, according to a cg42 study. BNPL transactions in India jumped by 21% in H1 2022 compared to 19% worldwide. Malaysian payments acquirer GHL launched consumer installment payments using PayLater by Grab. BNPL is booming!
Zilch to report BNPL purchases to credit agencies, pre-empting regulation
UK fintech company Zilch has said that using its buy now pay later (BNPL) product will affect customer credit scores, in a move that pre-empts stricter government regulation of the sector. Zilch boss Philip Belamant put a positive spin on the policy, highlighting that it will provide an extra chance for customers to improve their credit scores. Klarna, one of the largest providers of BNPL payments, announced it would report purchases in the UK to credit agencies last May. UKTN
Buy now, pay later demand soars among all age groups in the UK
New data also shows late fees are on the rise across the board. Younger users are still more likely to use the product, according to a survey by UK-based financial education charity the Centre for Financial Capability. Of the 18 to 24-year-olds surveyed, 54% expect to take out a loan over the next year, a 6% increase compared to 12 months ago. Almost one-fifth of 65+ say they used the products or intend to in the next 12 months, compared to less than 10% last year. Financial Times
Afterpay’s out. What’s next for ‘buy now, pay later’ in New Mexico?
At the start of the year, BNPL service Afterpay decided to leave the state, joining other providers that avoid New Mexico due to state regulations. But the new state regulation that prompted Afterpay’s departure does not prohibit BNPL providers — it merely regulates them and other loan providers, setting a 36% interest cap and limiting late fees. Fees on late payments within 10 days are limited to 5 cents on the dollar of the total installment price. Albuquerque Journal
Alibaba to offer buy now pay later in Europe
Alibaba will start offering a BNPL service to its customers in Europe. The company will provide its service through its affiliate Ant Group’s Alipay. Alipay has partnered with fintech company Splitit Payments to provide a BNPL option to EU customers of AliExpress, BABA’s international online marketplace. This BNPL service will launch in Germany, Spain, and France before expanding to other global markets. TipRanks
Credi2 develops BNPL solution for card-issuing banks with Visa
Credi2 has partnered with Visa to develop a white-label solution that enables cardholders to make BNPL payments via Visa credentials. The new product for card-issuing banks will facilitate installment payments in Central European markets. Providers who integrate the white-label solution into their card apps will gain access to the untapped billion-dollar market, and consumers can opt for partial payment before and after the online or POS purchase. IBS Intelligence
Eye on BNPL: Splitit teams with AliPay for Pay on Delivery; Klarna partners with Ingenico
Splitit Payments Ltd., a white-label buy now, pay later provider, has partnered with Alipay to offer Splitit’s Pay After Delivery option to consumers shopping on the AliExpress e-commerce marketplace. Pay After Delivery allows consumers to make a purchase using a credit card, then pay for it after delivery. Ingenico is partnering with Klarna AB to add Klarna’s payment options to Ingenico’s cloud-based payments-as-a-platform service (PaaS). Digital Transactions
BNPL users twice as likely to miss a payment: survey
84% of respondents used BNPL to pay for purchases they wouldn’t be able to afford otherwise, according to a cg42 survey. The study said those users are twice as likely to miss a debt payment. BNPL users’ behavior is of particular concern in a more challenging economic environment, according to Hugh Tallents, a partner and financial services practice lead at cg42. “With layoffs expected to increase in the New Year, many BNPL users are spending right now banking on receiving future paychecks that they may never get,” Tallents said. Fox Business News
How the BNPL India industry will shape up in 2023
It wouldn’t be a stretch to say 2022 was truly the year of buy now pay later (BNPL) in India. According to data analytics firm Experian, BNPL transactions in the country surged by 21% in H1 2022. Significantly, that’s 3% more than the global growth rate. Watch for more white-label BNPL models, B2B expansion, SME access to credit and credit options will grow, and buyer perception will improve. Inc 42
GHL to enable BNPL by Grab for in-store purchases
Malaysia-based payment acquirer GHL recently announced it continues to roll out the PayLater by Grab BNPL service for its in-store merchants, allowing customers flexible payments in monthly installments with 0% interest. GHL merchants can offer Grab’s PayLater payment service through GHL’s terminals at checkout, allowing consumers to benefit from a flexible payment solution that will grow financial inclusion and improve customers’ overall lifestyles. The Paypers
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BNPL Report – Jan 12: B2B growth or a bubble? AUS, Taiwan regulations; BNPL research