Sezzle CEO Charlie Youakim talks about surviving the “techpocalypse” and struggling for profitability as an industry underdog. Apple Pay Later aims for BNPL convenience and flexibility. PSCU’S CEO sees rewards but also sees risks when consumers stack purchases and installment loans. ChargeAfter partners with Tabit to expand B2B BNPL services for merchants.
Overstock with partner Klarna sees BNPL nearing 3% of sales, with some consumers using it for sales as small as $10. Fintech Magazine highlights its top 10 BNPL providers around the world. Vietnam’s BNPL market is poised to grow as consumers get familiar. Du-it, Malaysia’s first B2B BNPL service, is launching a crowdfunding campaign to finance its growth. In Pune, India, one mango seller is testing BNPL for purchases from Rs 5000 ($61) with 3-, 6-, or 12-month installments. Fruit for thought!
Sezzle CEO embraces company’s underdog status
For Charlie Youakim, much of last year felt like watching a slow-moving train wreck. First, the year ushered in “techpocalypse,” as the Sezzle CEO refers to it, which crushed the venture funding and valuation outlook for fintechs and the growth-at-all-costs mentality many employed. Then, as the buy now, pay later company sought to improve its financial outlook and pursue profits, Sezzle cut 20% of its staff and retreated from international markets. In the fourth quarter, Sezzle was finally profitable. PaymentsDive
Apple Pay Later is more about making Apple Pay more convenient than trying to dominate the ‘buy now, pay later’ arena, analysts say
The iPhone maker announced late last month that Apple Pay users in the US could now split purchases between $50 and $1,000 into four payments with no interest and no fees. Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, said the move was a response to consumer demand for flexible payment options. It’s being offered by Apple Financing, making it the first time Apple will handle tasks such as loans and credit assessments itself. Business Insider
PSCU’s Fagan: Payments tech accelerates & BNPL brings risks, rewards
The risk around Buy Now, Pay Later is ‘stacking.’ You’re not doing a credit check, so you’re not understanding what level of debt the consumer may have. And when they go to purchase something at one merchant and then go to purchase at another and another, they begin stacking these Buy Now, Pay Laters, usually over four installment payments. And you’re going to see delinquency on Buy Now, Pay Later. And I think, ultimately, the federal government will try and put some rules and regulations around that. Credit Union Times
ChargeAfter expands lender network in Canada with leading B2B BNPL provider Tabit
ChargeAfter will provide merchants in Canada with more financing options for their business customers at the point of sale. Financing options are very limited for businesses, resulting in low approval rates. To help merchants provide a solution for their business customers, ChargeAfter partners with financing providers that specialize in serving businesses. Tabit is a B2B BNPL solution powered by Merchant Growth, recently recognized as Canada’s fastest-growing B2B financing provider. Cision
Overstock CEO says customers are using BNPL for purchases as low as $10
According to CEO Jonathan Johnson, Overstock.com Inc. customers are using buy-now-pay-later (BNPL) services to fund small purchases. BNPL purchases account for a small number of total sales, just 2% to 3%, Johnson told Digital Commerce 360. He said there’d been a “slight uptick” recently, though they’re still a small part of the business overall. Overstock uses the Swedish payment service Klarna to facilitate those sales. Digital Commerce 360
Top 10 buy-now-pay-later providers around the world
This fintech category, which didn’t exist a decade ago, allows customers to spread the cost of high-ticket online purchases over several installments, either weekly or monthly. It has proven popular, amassing multi-billion dollar valuations for some of BNPL’s early movers. As the category begins to establish a foothold inside physical stores as well, we look at the Top 10 companies pioneering this space worldwide and examine the subtle differentiation helping them carve out a niche within BNPL. Fintech Magazine
The buy now, pay later sector in Vietnam: A quick guide
Vietnam’s General Statistics Office estimates that the overall retail sales of consumer goods and services in Vietnam grew by 19.8% in 2022 compared to 2021. The majority of these sales, however, were not made with credit. The Vietnamese population who own a credit card is relatively low, at approximately 5-6%. Fintech companies are trying to capture this middle segment with a range of buy now, pay later (BNPL) services. Vietnam Briefing
How du-it aims to empower SMEs with its Shariah-based BNPL platform
Malaysia-based du-it recently launched a crowdfunding campaign to raise MYR 3 million ($679,000) to support development of its B2B BNPL platform. The campaign will support the development of its B2B BNPL platform, which provides interest-free installment loans of up to $11,000 to businesses, particularly small and micro-sized enterprises (SMEs/MSMEs). CEO Shafik Ali says it is the country’s first B2B BNPL service. E27
Buy now, pay later: This Pune trader is selling Alphonso mangoes on EMI
With the mango season starting, a Pune-based seller is offering the fruit on Equal Monthly installments (EMI) so people can buy Alphonso (Hapus) mangoes without burning a big hole in their pockets. Gaurav Sanas, the fruit seller at Gurukripa Traders and Fruit Products, said that buying the fruit on EMI is similar to buying mobile phones in installments. The customer uses a credit card for a minimum purchase of Rs 5,000 ($61) and is converted into EMIs of three, six or 12 months. Business Today