Today’s BNPL Report is definitely overflowing. New reports say Goldman Sachs may blow off BNPL business Greensky after acquiring it for $2.24 billion in Sept 2021. Tech.eu serves up a must-read in its excellent deep dive into the EU BNPL market. Meanwhile, in Brexit country, new BNPL regs loom amid divided industry and consumer protection views on the shape of the rules. The Netherlands is also considering protecting consumers with regulations, noting 600 retailers offer installments.
Meanwhile, the juggernaut continues as OnBuy.com adds BNPL installments for 35 million products in addition to other new UK payment options. TransUnion research shows UK consumers aren’t concerned about increasing credit reporting as BNPL spending grew in the past year. Marqeta’s research suggests cashflow-starved SMBs could benefit from BNPL credit while SWBC and equipifi partner to bring BNPL to Fis. And in Romania, Mokka grew 211%. Holy smokes Batman, BNPL is smokin’ even with pizza!
Goldman Sachs mulls sale of $2.1bn BNPL business Greensky
Goldman Sachs is mulling the sale of its buy now, pay later-based home improvement lender Greensky as it retreats from the consumer finance market. The Wall Street giant acquired Greensky for $2.24 billion in September 2021. Since inception, approximately four million consumers financed more than $30 billion of commerce using the firm’s installment-based payments platform, which is currently online at a network of 10,000 US merchants. Finextra
A deep dive into the European ‘buy now, pay later’ (BNPL) market
“You shouldn’t be using BNPL to buy a pizza,” says the CEO of French ‘buy now, pay later’ startup Alma, taking a pot-shot at rival players in one of the hottest areas of financial services right now. Amid growing merchant acceptance, BNPL is set to grow to a €300 billion industry in Europe by 2025, while Deloitte says by then, it will have captured around 11% of the European e-commerce market. Tech.eu spoke to various BNPL players across the continent and fintech experts, taking a temperature check on the BNPL industry and where it is heading. Tech.eu
An update on UK buy now pay later
On Feb 14, the government released its much-anticipated consultation paper and draft legislation outlining its proposals to regulate Buy-Now Pay-Later (BNPL) products. BNPL has been under scrutiny for some time following the publication of the Woolard Review in Feb 2021, recommending urgent regulation of BNPL. The consultation paper builds on previous proposals for a BNPL regulatory regime contained in Treasury’s consultation response in June 2022. Legislation is expected in 2023. Burges Salmon LLP
Over 600 stores offer controversial buy-now-pay-later in Netherlands
Over 600 stores in the Netherlands let customers buy on credit through “buy-now-pay-later” services, based on the customer overviews of Klarma and Riverty, the two largest providers of these credit services. The Authority for Financial Markets (AFM) wants more legislation on these services, which aren’t considered consumer credit under current law, to ensure they follow the lending rules. Dutch businesses that offer buy-now-pay-later are mostly clothing stores. But liquor stores, furniture stores, perfume stores, and electronics stores also use this credit. NL Times
BNPL regulation has unfair ‘gap’, says Block executive
The current buy now pay later (BNPL) regulatory plan includes some unfair exemptions, according to Michael Saadat, head of international public policy at Jack Dorsey’s payments company Block. He said the Treasury’s current plan unreasonably distinguishes BNPL products from specialist firms, major retailers, and companies with a primary business outside the technology. Saadat noted that under the current BNPL regulatory proposal, strict rules would “not extend to final credit arrangements that are provided by retailers directly.” UKTN
UK online marketplace OnBuy introduces Klarna buy now pay later service on over 35 million products
A recent survey conducted by the online marketplace showed that one in three people choose to shop with a retailer because they offer their preferred payment method. OnBuy also recently introduced direct payment into UK bank accounts for the first time since its launch in 2016 and also added WorldFirst and Payoneer, which will benefit overseas sellers, often affected by high international payment fees. Retail Technology Innovation Hub
BNPL users undeterred by data on consumer credit reports
Buy-now-pay-later data is now appearing on increasing credit reports, but the change hasn’t discouraged consumers from spending. That’s according to TransUnion, which started to put BNPL data into credit reports last year and has seen no change in spending via BNPL since the change. Indeed 38% of UK adults use BNPL when shopping online, consistent with data from the previous year. The research found that 53% of people who used BNPL in the last year spent between £100 and £499 over the year. Peer2Peer Finance News
Could BNPL solve cash SME flow issues caused by unpaid invoices? Marqeta reveals research
Over half (55%) of SMBs have between £10,000 and £75,000 owed to them by customers every month, with one-third (36%) of businesses needing the funds to remain solvent. Marqeta explained that the likes of buy now, pay later offer businesses short-term loans to prop up cash flow, support innovation and enable expansion by purchasing products and services without committing to a full payment upfront. However, 43% of SMBs surveyed were unaware of this potential option. The Fintech Times
SWBC and equipifi partner to bring debit card BNPL to financial institutions
equipifi, a fintech company providing banks and credit unions with a white label Buy Now, Pay Later (BNPL) solution, announced its partnership with SWBC, an international financial services company. Through equipifi, SWBC’s clients can offer BNPL solutions on their digital banking app, helping debit cardholders split their larger purchases into flexible installment loans. SWBC serves more than 1,400 financial institutions across all 50 states. Cision
What can we expect from the Apple Pay Later rollout?
Despite the similarities of their BNPL offerings, Apple and PayPal have chosen to fight for individual users within their offerings. This puts under the microscope why a particular buyer might choose one payment method over the other. Research has shown that now new BNPL regulations have been introduced to better protect consumers in the UK – with more on the way – 37% are more encouraged to use the payment option. So, the question is, who will win the most consumer loyalty in 2023? FinTech
The percentage of customers making purchases with Mokka BNPL apps increased in 2022 by 211% compared to 2021
Mokka BNPL is emerging as one of the most popular alternative payment methods for customers in both physical and online Romanian shops. Data from a study by the fintech company shows that in 2022 the percentage of customers who made purchases with Mokka BNPL apps increased by 211% compared to the previous year. The gross merchandise value (GMV) made via this alternative payment method also saw a 206% increase compared to 2021. Romania Business Review
Recent BNPL report news:
New BNPL research report – Get the latest analysis and insight into 93 North American BNPL leaders.