BNPL in retail stores is now a thing, thanks to Splitit and other innovators. Apple Pay Later will rely on customer history to enable customer installment payments. The US buy now pay later market is projected to reach $112.9 billion in 2023, up 19%. While it says it has adequate protection, PayPal tells Australian regulators it supports greater industry regulation for stronger consumer protection. The UK ombudsman saw BNPL complaints rise 36% in 2022.
Affirm CEO Max Levchin set tongues wagging when he called credit cards “the enemy” of BNPL operators. He made the comment in an interview about the industry, his company’s challenges, and what’s on the horizon for consumer spending and investor sentiment. He contrasted the high-interest rates charged by credit cards with the interest-free installments offered by BNPL and also noted Affirm’s loan delinquencies decreased compared to the overall industry. Much more ahead…
Why Buy Now, Pay Later services like Splitit are focusing on physical retail
As e-commerce spending plateaus, payment providers with BNPL services continue to tap physical retail to drive business. Splitit, a white-label BNPL provider, launched a partnership with point-of-sale terminal Ingenico that will allow retailers to offer payment plans at checkout without the customer signing up for any third-party payment provider. Ingenico currently has about 40 million POS terminals globally across 300,000 merchants and will add the new service via a cloud-based system. ModernRetail
Apple to scrutinize customer history for new ‘buy now, pay later’ service
With Apple Inc. pushing into the lending business with a “buy now, pay later” service, the company is laying out rules for approving transactions. One key factor is whether you’ve been a good customer. Apple will evaluate borrowers based on their spending history and even which of the company’s devices they own and linked to their Apple Pay accounts. Many testers are seeing loan approvals for $1,000 and under. Yahoo Finance
US Buy Now Pay Later Business Report 2023
BNPL payments are expected to grow by 19% to reach $112.9 billion in 2023. The medium to long-term growth story of the BNPL industry in the US remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 10.4% during 2023-2028. As a result, the BNPL Gross Merchandise Value in the country will increase from $94.9 billion in 2022 to $185.6 billion by 2028. Research and Markets
PayPal tells Australia it supports buy-now-pay-later regulation
PayPal wants BNPL loans subjected to consumer protection law, it said in a submission to the Australian government, adding a powerful voice from inside the sector calling for regulation. The US firm, which provides BNPL loans alongside its main money transfer service, said it has its own safeguards to protect shoppers from borrowing too much, but the industry should face some regulation to ensure “consumer and industry certainty and competitive neutrality.” Reuters
‘Buy now, pay later’ firms see 36% jump in complaints
Consumers increased complaints to the Financial Ombudsman Service in the UK by 36% in 2022, according to data from a Freedom of Information request. The Financial Ombudsman Service, which currently has no official BNPL mandate, received 220 complaints against BNPL firms last year – up from 162 in 2020. The rise in complaints comes at a time of a proposal for new regulation of the BNPL sector as the market continues to grow in popularity. AltFi
Buy now, pay later: ‘The enemy is the credit cards,’ Affirm CEO says
Affirm CEO Max Levchin joins Yahoo Finance Live’s Rachelle Akuffo and Brian Sozzi to discuss company earnings, competition in the buy now, pay later space, the pullback in consumer spending, managing credit, investor sentiment, worker layoffs, and the outlook for Affirm. “BNPL is about 5% of US e-commerce and less than one-half percent of retail sales… The enemy or the main competitor is the credit card, not each other. Delinquencies are rising, yet ours fell in the past quarter.” YouTube
Germany buy now pay later business report 2023: A $98 billion market by 2028
BNPL payments are expected to grow by 19.4% annually to reach $59.4 billion in 2023. The BNPL payment industry in Germany recorded strong growth supported by increased e-commerce penetration. Medium to long-term growth remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, registering a CAGR of 10.6% from 2023-2028, with Gross Merchandise Value increasing from US$49.8 billion in 2022 to $ $98.3 billion by 2028. BusinessWire