New rankings show Affirm, Klarna and Afterpay continue to lead the US buy now pay later industry with Zip, Paidy and Sezzle rounding out the leaders. Insider Intelligence examines why Goldman Sachs is trying to unload home reno BNPL GreenSky. Research shows some consumers may buy groceries with installment payments but don’t repeat while 27% of BNPL users use it to bridge paychecks. Global payments firm Rapyd and white label BNPL
Splitit are promoting quick customer checkouts to attract new merchants. India’s Simpl lays off 25% of employees with an insensitive message about needing to “cut costs and extend its runway.” While layoffs are difficult, they can certainly be better handled. Group 1 Automotive re-signed with UK BNPL service Bumper. In Australia, Afterpay tweaks its late fee rules in advance of new government regulations. Swiss CembraPay is bundling its payments and BNPL services. Finally, Seventeen magazine offers up its picks for best BNPL services for GenZ readers.
Affirm and Klarna continue to rule provider ranking of BNPL apps
This is one of those cases where nothing changed, indicating stability in buy now, pay later (BNPL) for one thing. Still locked in their battle for primary in a two-way tie for the No 1 spot are the Affirm and Klarna apps. Right behind at No 2 remains Afterpay. Unchanged at No 3 is Zip. Paidy is holding its own at No 4 for another month. Closing the Top 5 once again is the popular Sezzle app. PYMNTS
Goldman Sachs’ BNPL sale could attract big interest—here’s why
Goldman is pulling back on consumer products across the board, including its Marcus brand. In February, Goldman stopped pursuing new credit card programs and abandoned plans for a branded consumer credit card. Goldman reported a$3 billion loss over nearly three years from the unit that includes GreenSky. Home renos happen no matter the state of the economy. That could help whoever buys GreenSky tap an industry more resistant to market downturns than nonessential retail. Insider Intelligence
Grocery shoppers who try BNPL do not stick with it
Some consumers may try buying groceries with buy now, pay later, but PYMNTS research shows it doesn’t stick. BNPL is increasingly becoming an option for food purchases. Major grocers are getting on board, with Kroger offering Afterpay, Walmart accepting payments via Affirm and leading third-party delivery aggregator Instacart providing the option to pay with Klarna. Only 0.3% of those surveyed had paid for their most recent grocery purchase with BNPL options, down 50% year over year from the 0.6% who said the same in March 2022. PYMNTS
Americans using BNPL to make ends meet, with 27% of users bridging paycheck gaps and 21% buying groceries
Buy now, pay later loans aren’t only for fancy shoes, kitchen appliances and gaming systems. Millions of Americans use these loans as lifelines. The newest LendingTree survey finds that 27% of BNPL users say they use these loans as a bridge to their next paycheck and are also being used to purchase necessities. Case in point: 21% of BNPL users say they’ve used one of the loans to buy groceries. More than half of users say they’ve regretted a BNPL-financed purchase, and 40% of these users have paid late on one of the loans. LendingTree
Rapyd Partners with Splitit to power next generation of Buy Now, Pay Later technology
The Rapyd Splitit partnership will enable businesses to deliver seamless installment payments to their shoppers with access to Rapyd’s extensive global payments network. The partnership will bring Splitit’s Installments-as-a-Service platform to Rapyd’s network of merchants and marketplaces, making it possible for businesses anywhere to adopt Splitit’s one-of-a-kind white-label, card-based installment platform, offering customers a quick checkout experience and the highest approval rates. Fintech Finance News
BNPL fintech Simpl lays off over 25% of its workforce to extend runway
Indian buy-now-pay-later fintech startup Simpl announced significant layoffs to reduce costs and extend its runway. One source, who requested anonymity, stated that Simpl had laid off over 25% of its workforce, with employees across departments receiving a random email from management informing them of their termination. Simpl raised $40 million in December 2021 to expand its service and $83 million through several funding rounds. The company claims to have onboarded 19,000 merchants and recorded 42 million users on its platform in 2022. Startup Story
Group 1 signs deal with Bumper Buy Now Pay Later finance product
Group 1 Automotive renewed a multi-year agreement with payment platform Bumper. The dealer group will continue to use Bumper’s BNPL product for splitting the cost of car repairs and servicing into interest-free payments. Spanning all 93 dealer sites, this renewed agreement is for 13 franchises which include BMW, Ford, Kia, Skoda and Mercedes-Benz and secures the partnership between Bumper and Group 1 Automotive for a further two years, having partnered since June 2019. Motor Trader
Afterpay tweaks late fee rules as Australian lawmakers weigh BNPL regulation
Afterpay tweaked its late fee structure for purchases under $40 as lawmakers consider exposing the company and its competitors to enhanced consumer protections under Australia’s credit regulation. Afterpay this week announced its late fees for orders under $40 would be capped at 25% of total order value, replacing rules which slugged late payers with an initial $10 late fee. Under the new regulations, the maximum late fee for those orders will still be $10, but orders under $40 will be spared total late fees. Smart Company
CembraPay bundles Buy Now Pay Later and digital payment services
CembraPay expands its position and activity in the growing Buy Now Pay Later (BNPL) segment. As part of implementing its strategy and the investments in BNPL and embedded digital payment services, and as previously announced, Cembra is combining its subsidiaries Swissbilling and Byjuno into one business area. The new brand CembraPay forms a leading Swiss provider of invoice payment solutions with flexible payment options in the online and offline sectors. CembraPay
6 Most popular buy now, pay later apps — and what experts think of them
Thanks to Buy Now, Pay Later (BNPL), the trendy loan service favored by Gen Z, you can delay your shopping payments by taking out an installment loan paid back over time. BNPL allows customers to use payment plans, so you owe smaller amounts of money over time rather than paying the total amount upfront. Some argue BNPL can be used as a budgeting tool, while others point out that, according to Credit Karma, Gen Z holds an average debt of $16,283, mainly from student debt and auto loans — and BNPL only increases that amount. Seventeen
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