PayPal’s BNPL revenue rose an impressive 70% over last year, reaching $6 billion with 32 million consumers using it since launching. They’re big and getting bigger. Meanwhile, we’ve got market analyst coverage of the latest ups and downs for Splitit (+), Zip (-), and Afterpay (-) and an investor look at three BNPL leaders – Apple, PayPal, and Affirm.
Zilch CEO Philip Belamant says UK regulation of BNPL is needed and welcome. Atome’s Singapore owner AIG raised $400 million and plans to expand operations, including BNPL. Pakistan’s Bank Alfalah entered the BNPL market with a $68.6 million purchase of 7.2% of QistBazaar.
The markets are still trying to make sense of BNPL’s investment potential, but consumers like what they see when buying goods and services with installment payments. And that’s today’s BNPL Report!
PayPal buy now, pay later grabs $6b of payment volumes, up 70%
PayPal’s “Buy Now, Pay Later” service experienced a surge in payment volumes, reaching $6 billion, up 70% from the previous year. PayPal attributes the growth to increased adoption of online shopping and the convenience of deferred payments. More than 32 million consumers have used the option since its inception — and BNPL is available at roughly 3 million merchants. PayPal remains optimistic about the potential of the “Buy Now, Pay Later” model and plans to continue investing in the service to meet consumer demand. PYMNTS
Guess which ASX BNPL share just rocketed 13% amid a deal with Visa?
The broader market is struggling today, but not this ASX BNPL share. The Splitit share price is up 13% during the lunch hour on Friday. The ASX BNPL share announced a new two-year deal with Visa. The partnership may have a material impact on Splitit’s brand and business development prospects. Visa Instalments will be integrated within Splitit’s existing API to provide a “fully embedded and universal consumer experience.” The companies expect to launch the pilot program in the second half of 2023. The Motley Fool
Afterpay revenue rises but unpaid debt charge-offs continue
Afterpay Limited (ASX: APT) reported a rise in revenue for Q3 2021, driven by strong customer growth in the US and UK markets. The company showed underlying sales of $5.2 billion, up 63% from the previous year. However, the company also reported an increase in unpaid debt charge-offs, which rose to 0.9% of underlying sales. This is a potential concern for investors as the company continues to expand its BNPL service. Block group has been busy integrating Afterpay into its Square and Cash App Pay interfaces. Business News Australia
Is Afterpay profitable?
Afterpay is almost breaking even. After its last deficit in late 2021, the company registered a $43 million profit the following year. The company believes it will break even in less than a year. To accomplish this goal, Afterpay must achieve a 65.2% year-on-year growth, which is relatively high. Still, Afterpay has done a tremendous job regarding capital management, with debt representing 6.8% of equity. This shows Afterpay has financed a large percentage of its activities through equity capital; its minimal debt requirement reduces the risk of investing in a struggling firm. Business Model Analyst
Why did the Zip share price dump 9% in April?
The share price of Zip Co Ltd (ASX: Z1P) dropped 9% in April despite the company releasing positive news. The company announced a partnership with eBay Australia to offer its BNPL service. Despite this, investors may have been concerned about the potential impact of increased competition in the BNPL market and the impact of regulatory changes. Zip outperformed multiple ASX BNPL shares during the month. For example, Block Inc (ASX: SQ2) shares declined 11% in April, while Sezzle Inc (ASX: SZL) shares plunged 18%. The Motley Fool
The 3 most promising BNPL fintechs to watch in May 2023
BNPL is rapidly growing, and investors are taking notice. Several BNPL fintech stocks are worth considering for investment, including Afterpay, Klarna, Affirm, and Sezzle. The BNPL trend is gaining traction among younger generations who prefer the flexibility and transparency of these services. The article notes that while these stocks may have high valuations, the growth potential of the BNPL market makes them worth considering for long-term investment. InvestorPlace
How should UK buy now, pay later be regulated?
As of 2022, more than 17 million consumers in the UK have used BNPL services. Some 54% of millennials have used a BNPL service. Philip Belamant of Zilch admitted BNPL should be regulated, including mandating credit checks in some form for all deferred payments, meaning providers should be regulated against continuing to lend to customers who cannot afford to repay what they’ve already borrowed. The UK government is currently considering a consultation on FCA regulations. FT Advisor
AI-driven tech company Advance Intelligence Group secures $400m
Advance Intelligence Group, a Singapore-based AI-driven technology company, raised over $400m in its Series D round of financing, valuing the company at over $2 billion. Its AI-powered, credit-enabled products and services include Asia’s leading BNPL platform Atome. It plans to use the new capital to expand its BNPL and digital lending presence across Asia, deepen its AI and big data analytics capabilities, grow its enterprise client coverage, and bolster its global talent pool. Fintech Global
BAFL buys equity stake in BNPL fintech
Bank Alfalah Ltd announced on Friday its entry into the venture capital ecosystem through an agreement to acquire a 7.2% equity stake worth Rs140 million ($68.6 million) in QistBazaar, a buy-now-pay-later (BNPL) fintech. “It’s the first time a commercial bank has taken an equity stake in a BNPL fintech. With this collaboration, the bank aims to transform the BNPL landscape in Pakistan and pave the way for more collaboration between commercial banks and the fintech,” BAFL said. Dawn