Splish, splash! More than 4,000 summer camps,1,500 sports leagues and 1,200 day-cares offer BNPL, according to a Fox News report. Inflation is changing consumer spending habits, with BNPL used to purchase necessities, including groceries. CFPB data provides further insight into BNPL borrowers.
BNPL and multiple payment processors enhance merchant conversions. Juni launched a new buy media pay later program for business and media buyers. We’ve got new perspectives on what regulations could mean in the UK as Australia moves ahead with new guidelines for the industry. B2B BNPL operator Vartana raised $20 million in new financing to spur further growth. More BNPL action is ahead.
Inflation is changing people’s money habits: 7 Studies show the trends
Research by LendingTree finds 27% of BNPL users surveyed used some form of buy now, pay later program as a bridge to their next payday. This comes during high inflation, rising interest rates, and record credit card use. BNPL plans are used to purchase necessities, with 21% of respondents saying they have paid for food and basic supplies in installments. The use of BNPL to make it to the next payday occurred across all demographics. Men (32%) were much more likely to say they’d relied on BNPL for this purpose than women (23%). The Financial Brand
Everything we know about BNPL borrowers
We’re beginning to understand buy now pay later borrowers better. The CFPB released a report based on data from their 2022 Making Ends Meet Survey, making it clear that BNPL borrowers can access and use other credit. BNPL borrowers are likelier to “actively use other credit products” than consumers who don’t use BNPL loans. According to their analysis, 95% of BNPL borrowers “had at least one credit record in another account, compared to 86% of non-borrowers.” Inside ARM
Summer camps, sports leagues jump on buy now, pay later bandwagon
4,000 camps and 1,500 sports leagues offer buy now, pay later with Worldline’s services. A growing list of camps and sports leagues are offering buy now pay later payment services to help parents pay for increasingly more expensive activities, according to data from Worldline. More than 1,800 childcare services have also jumped on the bandwagon as inflation continues to weigh down household budgets. Fox Business News
Enhancing conversion rates with buy now pay later and multiple payment processors
How can buy now pay later help merchants increase their conversion rates? Here are some of the benefits of offering BNPL to customers: higher average order value, higher customer loyalty, lower cart abandonment and increased customer satisfaction. Multiple payment processors can reduce payment failures, increase trust and reach more customers. BNPL and multiple payment processors are two effective ways for merchants to enhance their conversion rates. Tech Bullion
Juni’s ‘Buy Media, Pay Later’ offers digital commerce alternative
Financial platform Juni is offering a different take on buy now pay later with its ‘Buy Media, Pay Later’ (BMPL) launch through Juni Invoices. BMPL aims to eliminate the manual process of media invoices as Juni looks to offer flexible media financing options in 30, 60 and 90 days of payment instalments that offer auto-collect, manage and pay media invoices for e-commerce companies. Juni Invoices allows e-commerce companies to boost cash flow, save time by streamlining the invoice process and enjoy better payment terms. Payments Expert
Juni introduces BNPL for online retail media invoices
The company is introducing a ‘buy media, pay later’ model to ease media invoice management for e-commerce companies. The ‘Juni Invoices’ offer allows online retailers to choose between 30, 60, or 90 extra days to pay their media invoices. This implies that these businesses can purchase media advertising and defer their payments based on their selected option. Juni will also introduce its mobile app along with the new invoice service. Finextra
What could BNPL regulation mean for UK fintechs?
UK consumers spent £1.3 billion in April using BNPL, according to Adobe, representing a 16% share of the total online spend of £8 billion. This was down 1.7% from the previous month and down 2.2% year-over-year. However, despite BNPL spending remaining elevated, there’s good reason to be cautious. The UK’s uncertain regulatory environment has raised questions about whether the country is a favorable place to operate. CMC Markets
Australia: Consumer protection at the heart of proposed buy now pay later reforms
The Government considers it important to ensure the consistency and transparency of BNPL regulation so that consumers can make better-informed decisions when engaging with a BNPL service. It also underscores the principles underlying the licensing, conduct and disclosure obligations for credit products under the NCCPA. Lenders must hold a license, comply with responsible lending regulations, and meet statutory dispute resolution and hardship requirements. Corrs Chambers Westgarth
Business BNPL start-up Vartana raises $20m Series B
Vartana, a provider of managed checkout and buy now, pay later (BNPL) options for businesses, has raised a $20 million Series B round, led by Activant Capital with participation from Mayfield, Audacious Ventures and Flex Capital. Funding will support expansion, enhance product offerings, and broaden its financial marketplace partnerships. California-based Vartana was founded in 2020 by Kush Kella and Ahmed Sharif. Fintech Futures