FIS partnered with Affirm to make BNPL services available to more than 1 million merchants at subsidiary Worldpay. UK digital bank Monzo doubled revenue but also increased bad loss provisions after refocusing on consumers and a strong BNPL push last year. Spanish airline Iberia will allow passengers to fly now and pay later for airline ticket purchases up to €10,000 in partnership with SeQura and Aplazame.
Hokodo says B2B conversion rates can be 40% higher with a digital credit offer, with SMBs spending 30% more and 24% more often. Sezzle CEO Charlie Youakim and PYMNTS.com’s Karen Webster discussed the challenge of credit-marginalized consumers, BNPL, credit reporting, and educating consumers about credit. TotalRetail looks at the risk vs rewards for merchants offering BNPL.
e27 examines four of the biggest BNPL misconceptions. Dubai’s Tabby increased its credit facility to $350 million with new investors to service its four million+ customers and 15,000 merchants. BillEase is expanding installment payments for Philippine consumers through a partnership with SM Supermalls’ 80 shopping centers.
Worldpay taps Affirm for BNPL
Buy now, pay later provider Affirm and Fidelity National Information Services, better known as FIS, have partnered to make Affirm’s checkout services available to FIS’s Worldpay clients. Worldpay merchants can offer select customers buy now pay later options for bi-weekly and monthly installment payment plans. The multi-year partnership with Worldpay gives San Francisco-based Affirm access to about one million merchants in Worldpay’s global network. PaymentsDive
Monzo increases bad loan provisions after buy now, pay later push
The UK digital bank posted a pre-tax loss despite a revenue boost driven by tripling its lending book. Monzo increased its provisions against bad loans from £14 million to £101 million after it focused on consumer lending and expanded further into buy now, pay later last year. The UK fintech said its revenue had more than doubled to £355.6 million over the year to the end of Feb, driven by higher interest rates on its deposits and its lending book tripling to £759.7 million. Financial Times
Spanish airline Iberia allows passengers to pay for flights in installments
Spain’s Iberia Airline has become the first in the country to launch a new BNPL scheme allowing customers to pay for their flights in installments. Iberia will implement the new financing option in conjunction with Iberia cards through the services of SeQura and Aplazame. Travelers who purchase flights through iberia.com can finance purchases up to €10,000 and repay over three, six, nine, or twelve months. The company plans to expand the service to other EU countries. Euro Weekly News
Payment convenience conquers all
Hokodo’s Lucy Heavens expects big changes at B2B checkouts this year. B2B buyers should be able to use trade credit like consumers can access BNPL – with just the click of a button. 53% of UK small businesses struggle with cash flow, but suppliers with a digital trade credit service at the checkout see conversion rates 40% higher than those without. Moreover, buyers love it so much that they will purchase 30% more and 24% more often. Finextra
When credit status is hurt by unexpected life events, lack of credit knowledge With an estimated 100 million US consumers having used a buy now, pay later (BNPL) product, the discussion led to more activity among the credit bureaus and scoring models to include BNPL borrowing and repayment activity as a new way of improving scores. Youakim called his company’s Sezzle Up credit-building product “a home run” in the three years since its launch, adding that “in four months, we saw the average Sezzle Up customer raise their credit score by 20 points.” PYMNTS
Are buy now, pay later benefits too good to be true?
It’s estimated that 60% of shoppers have tried BNPL services at least once. By 2027, there are expected to be 900 million BNPL users worldwide, an increase of 157%. The BNPL provider carries the credit risk for a small processing fee and a slice of the transaction. This method provides retailers with all the rewards and none of the risks, in theory. In practice, though, purchasing via BNPL can result in complications with dissatisfied customers, product return challenges and fraud. TotalRetail
Buy-Now-Pay-Later (BNPL) is revolutionizing the e-commerce landscape
A whopping 70% of BNPL users claim they would no longer purchase from e-commerce stores without flexible and convenient payment options. Not only does this give brands with BNPL a competitive edge, it means that smaller stores can no longer sleep on flexible financing. The BNPL market is tipped to be worth more than $3 trillion by 2030. As the e-commerce industry prepares for another digital shift, here’s why you need to be ahead of this new financial curve. HackRead
Gulf buy now, pay later firm Tabby increases debt facility to $350 million
Dubai headquartered BNPL operator Tabby raised its debt financing to $350 million led by US investors, including Partners for Growth, Atalaya Capital Management and CoVenture. The new funding will enable it to serve more customers, retailers and purchasers. The company said it has over four million active customers and has partnered with over 15,000 businesses. Reuters
Pinoy shoppers embracing BNPL for financial flexibility
Consumer finance app BillEase has become popular among Filipino shoppers of buy now, pay later (BNPL) or installments as an alternative payment for those who cannot immediately afford to make the purchase in cash, especially those with no credit cards. BillEase’s latest partnership with the country’s largest mall chain, SM Supermalls, is notable, giving BillEase access to SM Supermalls’s 80 malls across the Philippines that serve 4.2 million people daily. Malayan Business Insight
Myth busters: Buy now pay later edition
Much of the recent debate has revolved around fears that BNPL is inherently predatory, that the industry is opposed to regulation, or that it will lead to laissez-faire lending and unsustainable debt. For many, BNPL may seem too good to be true. Mastercard’s Ben Gilbey says while prudence is a good thing, it’s equally important to debunk four of the biggest and most widespread myths about BNPL. e27