Accenture says banks could increase credit card income from 10% to 16% by 2025 by embedding BNPL. Bank, are you listening? ZestMoney’s founders jumped ship after the $200 million plus acquisition by PhonePe failed. It’s earnings season, and BNPL financials show positive signs despite the headwinds. Capchase says its new SaaS BNPL service could deliver up to 20% in annual contract value increases.
French BNPL Alma struck a deal with Numeral and BNP Paribas to automate payments to its 11,000+ merchants. UK marketplace OnBuy rang up a customer BNPL deal with Clearpay, including access to more than one million online retailers. Consumers see tighter BNPL loan approvals and more rejections as providers face higher credit costs and increased defaults. Saudi Central Bank SAMA watched a BNPL regulations consultation to protect kingdom consumers while law firm Torys summarized regulations progress in Canada, Sweden, UK, Australia and the US.
Finding success with BNPL: Strategies for banks to get it right
It is estimated 360 million users of BNPL in 2022, with that number likely to balloon to almost a billion in 2027. Incumbent banks have the potential to take BNPL way further than the fintechs ever could. Embedding of BNPL in banks’ credit cards could increase credit utilization in the US from 21% in 2021 to 26% in 2025 and in Europe from 19% to 28%, boosting total credit card income of a large model bank by between 10% and 16% in 2025. Accenture
ZestMoney founders resign in wake of failed sale
The founders of ZestMoney have resigned weeks after the Indian BNPL firm’s planned acquisition by Walmart-backed mobile payments giant PhonePe fell through. CEO Lizzie Chapman, CFO and COO Priya Sharma and CTO Ashish Anantharaman have all stepped down, according to a staff email written by Chapman. PhonePe ditched a planned acquisition of ZestMoney for between $200 million and $300 million after due diligence concerns, the Economic Times reported in April. Finextra
5 Things earnings season teaches us about BNPL
Sift through the filings, listen to the calls with management, and earnings season give a sense of how consumers — and merchants — are embracing buy now, pay later. The overarching theme? Despite macro headwinds and the ongoing grappling with inflation, several vital metrics are healthy. Amid the inflationary surge over the past several months (and the fact that debt has become more expensive), many consumers have ramped up spending on credit cards, though 15% have decreased their spending via credit cards PYMNTS
Capchase gets into buy now, pay later with Capchase Pay for SaaS financing
Capchase, a provider of non-dilutive growth capital, is now in the buy now, pay later space after launching Capchase Pay to help software-as-a-service companies close deals faster. Capchase Pay enables SaaS companies to collect the total contract value for their software while providing their customers with flexible payment terms. The company reported early customers experienced a 300% increase in sales velocity, an 80% increase in lifetime value and a 20% annual contract value increase. Techcrunch
Numeral and BNP Paribas chosen by Alma to automate billion of euros of payments per year
Alma will automate millions of payments per year to its 11,000 merchants in collaboration with BNP Paribas and payment processor Numeral. The collaboration arrives as merchants adopt new payment options for buyers who increasingly expect more flexible payment options in their shopping experience. Alma can automatically send daily payouts from its BNP Paribas accounts to its merchants. While fully automated, the process is secure for Alma and its merchants. EIN Presswire
OnBuy hooks up with buy now pay later specialist Clearpay as customers demand convenience online
OnBuy announced a partnership with buy now, pay later (BNPL) provider, Clearpay to enable BNPL across most of the e-commerce venture’s products. With Clearpay, shoppers can split their purchase payment into four interest-free installments over six weeks. OnBuy will also feature on Clearpay’s Shop Directory, which globally drives one million new customers to merchants every day. Retail Technology Innovation Hub
Consumers are getting rejected for BNPL plans, industry tightens its practices
Have you recently been rejected for a buy now, pay later plan? You probably aren’t alone. Due to increased interest rates and low profits, BNPL companies like Affirm, Klarna, and Sezzle are getting pickier about how they lend money. Even existing customers are denied by the BNPL companies they’ve been able to borrow from before as the industry tightens its lending practices to reduce defaults and losses. Market Realist
Expect increased regulatory focus on “buy now, pay later” financing
“Seismic shift in financial services,” “fastest-growing payment option,” and “explosive growth” are terms used to describe the BNPL financing market. Technological innovations, the emergence of new fintech companies, and an increase in online shopping because of COVID have supported the proliferation of BNPL financing. That growth has also prompted Canadian and international regulators to examine more closely the impact of this popular financing product. Torys LLP
BNPL: Saudi Central Bank (SAMA) seeks public consultation on rules for regulating buy now pay later fintechs
In the interest of transparency and broader participation, SAMA “invites stakeholders and the public to provide suggestions and observations on the draft Rules by visiting the Public Consultation Platform at the National Competitiveness Center.” This is “part of SAMA’s role in supervising and regulating the BNPL companies, and its continuous effort to develop the financial sector in general and empower the FinTech sector in particular.” Crowdfund Insider