New JD Power research shows consumers’ interest in BNPL at point-of-sale grew 4% in 2022. French startup Elyn launched a consumer “try before you buy” model for merchants. BNP Paribas and Hokodo launched a B2B BNPL service for large multinationals. A PYMNTS report shows little change among rankings of the top US BNPL providers led by Affirm and Klarna. Sezzle plans to launch on NASDAQ this year after record earnings.
In Canada, Lenovo and Tabit will provide BNPL credit for businesses. Saudi fintech startup Tamara secured a $150 million credit facility from Goldman Sachs. Block’s finance chief said Afterpay’s BNPL offer requires different AUS regulations than longer-term credit loans like mortgages. 38% of UK employees have used BNPL during the current credit crisis, and 15% plan to use it in the future. The Ascent opines that credit cards are still a better deal than BNPL. We disagree if you compare BNPL apples to credit card apples.
The battle for buy now pay later customers is being won at the point of sale
The percentage of consumers with an active BNPL account increased to 22% in January 2023 from 18% in October 2022 and 14% in July 2021. This rapid growth merits the attention lenders are giving to the space, and the key to scaling a BNPL solution seems to be promoting it at point of sale. 29% said they became interested in a BNPL service because it was offered as an option at checkout. Respondents also cite friends and family recommendations (16%) and social media (14%). JD Power
Elyn wants you to try before you buy
French startup Elyn wants customers to have more options and flexibility when shopping for goods online. In essence, the company allows consumers to try out a product before they buy it, according to TechCrunch. Consumers have five days to decide whether to keep the item, return it, or exchange it for another item. Elyn takes an undisclosed single-digit commission percentage from the products that customers keep. Payments Journal
Hokodo & BNP Paribas join forces to launch a Buy Now, Pay Later solution for large B2B commerce businesses
UK-based fintech Hokodo has partnered with French international banking group BNP Paribas to launch a B2B Buy Now, Pay Later (BNPL) solution for B2B commerce businesses. The service includes proprietary credit decisioning, transaction financing, credit and fraud insurance, collections through an eMandate and dunning, and different financing options available to better fit merchants’ needs. It provides instant buyer approval through a real-time credit decision process thanks to the configurable underwriting model. News Release
Buy now pay later provider ranking shows little movement
In a stunning non-upset, Affirm and Klarna remain locked in quasi-eternal competition at No 1. That’ll change at some point, but we have no idea when. Afterpay is still chilling at No 2. Clocking in at No 3 it’s Zip, which recently exited most of its markets to focus. Japan-based Paidy is where we left it at No 4. Sizzling at No 5 is Sezzle, which may be going public this year. A similar pattern remains with the following top 10 players. PYMNTS
Sezzle to list on Nasdaq and offer stock to US buyers
Buy now, pay later (BNPL) provider Sezzle intends to list shares of common stock on the Nasdaq Global Market. Should this proposed listing happen, the company’s shares will continue to trade on the Australian Securities Exchange (ASX), and it intends to enable it to be sold to US buyers on the ASX as well. Sezzle said in an earnings release that income jumped 16.2% to a record $38.3 million in Q4 2022 and has identified other revenue sources that can bring it an additional $10 million in 2023. PYMNTS
Tabit launches partnership with Lenovo to offer Buy Now, Pay Later to B2B customers in Canada
Tabit — Canada’s first B2B Buy-Now-Pay-Later (BNPL) solution offered at point-of-sale, announced today the launch of a new partnership with Lenovo. With Tabit, Lenovo will now offer terms of up to 12 months to business buyers, including a 30-day option at 0% interest. A first of its kind in the B2B space in Canada, Tabit and Lenovo are helping small businesses access immediate and fully automated financing at the point of sale. Cision
Goldman Sachs backs BNPL startup Tamara with $150M facility
Saudi fintech startup Tamara secured a receivables warehouse facility of up to $150 million from Goldman Sachs, bringing the buy-now-pay-later (BNPL) firm’s total funding in equity and debt to $366m since its launch in 2020. The facility will help finance the growing demand for bringing the buy now, pay later products in the GCC while continuing its growth across new verticals. Riyadh-based Tamara is one of the largest BNPL providers in the region, onboarding six million customers in three years. Gulf Business
Afterpay is ‘working capital’ not credit, says Block CFO
Block’s finance chief Amrita Ahuja hailed Afterpay’s buy now, pay later product as “working capital for many of our customers” as she urged the federal government to adopt a measured approach to regulation of the sector. The fintech argues its short-term, merchant-funded loans are very different from large revolving limits on credit cards or loans to buy cars or houses. Her views contrast with major banks ANZ and Westpac and the corporate regulator, which have backed onerous new rules for BNPL. Australian Financial Review
More than a third of workers say they have used buy now, pay later services during cost of living crisis
In a survey of 3000 employees by professional services firm Barnett Waddingham, 38% of employees said they had used BNPL, and a further 15% planned to use it in the future. Credit cards, bank loans and payday loans are also being used to combat rising expenses. Just under a third (30%) said they had increased their use of credit cards, while 17% had taken out a bank loan. Meanwhile, 12% had resorted to using payday loans. This is Money UK
Here’s why I think credit cards are a better deal than ‘Buy Now, Pay Later’ plans
Research from The Ascent from last year found 50% of consumers use these plans, and 39% of those who never used one were likely to in the near future. In fact, I actually think credit cards are a much better option than BNPL plans. BNPL plans give consumers a false sense of security when it comes to being able to afford purchases. The Ascent