Researchers examined Chinese BNPL users and determined that BNPL boosts consumer spending but noted mobile users are very conscious of spending and avoiding interest charges. Spain’s Sipay signs a deal with Sweden’s Sileon to expand Spanish BNPL to Fis. UAE payment processor NymCard buys Spotti, which has over one million users, 1,500 merchants and operates in KSA, USE and Bahrain. Retail Dive offers merchants tips on researching and choosing the best BNPL provider for various business segments.
Klarna introduced a new donation tool. John Mitchell thinks banks are best positioned to bring BNPL forward in the challenging markets. Motley Fool analyst Leo Sun is not convinced Affirm’s business model is sustainable yet, so he’s cool on investment until revenue and costs stabilize. UK’s iNews looks at the impact of BNPL on credit reporting and credit scores, while the Monetary Authority of Singapore responds to calls for stronger BNPL regulations with market-friendly options.
Opening the black box of digital wallets and demystifying ‘buy now, pay later’
The growth of digital wallets and popular BNPL options raises social welfare and policy concerns. This column uses data from a world-leading Chinese provider to document that ‘buy now, pay later’ dominates e-wallet transactions and expands FinTech credit to underserved consumers. It also substantially boosts consumer spending, but users – especially those relying on e-wallets as their sole credit source – carefully moderate borrowing when incurring interest charges. Vox/CEPR
Is buy now, pay later financing right for your retail business?
The draw for many merchants is that BNPL services are easily implemented as an off-the-shelf solution. From consumer electronics to high-end jewelry, there seem to be unlimited possibilities for retail categories. Knowing and understanding your customers is very important, and research is vital to get a good sense of how a solution will align with your business needs and affect your brand reputation. Retail Dive
Sipay and Sileon launch new BNPL solution in Spain
Spain-based Sipay has brought Sweden-based fintech Sileon’s BNPL technology to Spain through a 3-year agreement. This agreement allows Sipay to expand its services to include subscriptions, billing, and installment payment plans and confirms Sileon as an international technology provider in the growing BNPL market. With Sileon’s SaaS technology, Sipay can offer merchants the possibility to meet consumers’ high demand for flexible and convenient payment options. The Paypers
NymCard acquires Spotii to offer BNPL-in-a-box for banks and financial institutions
NymCard, the leading payments infrastructure provider in the MENA region, has completed the acquisition of Spotii, a prominent BNPL fintech operating in key markets, including KSA, UAE, and Bahrain. Spotii was originally a direct-to-consumer BNPL service with a base of over one million registered customers and over 1,500 merchant partners. This acquisition combines Spotii’s technology, risk engine and market expertise with NymCard’s BaaS and Card Issuing platform. Zawya
Does Klarna affect your credit score? Which BNPL schemes report data to credit agencies
More than 17 million UK shoppers have used BNPL, but it’s not risk-free. It could hurt your credit score, and the sector remains unregulated. Only shoppers using Zilch will see their BNPL behavior affect their credit score. Missing payments will have a negative impact while using BNPL correctly should improve your credit history. Companies like Klarna and Laybuy have started reporting to credit agencies, but this information will not impact your credit score. iNews
Klarna releases donations and other tools for climate-conscious consumers
Payments network Klarna debuted new products geared toward environmentally-conscious shoppers. The company launched its top-up donations feature and an upgraded carbon footprint tracking tool at a time when retailers are debating the effectiveness and cost of their sustainability efforts. Klarna’s new donation feature lets consumers add a $1 donation to purchases made using its BNPL tool, powered by the donation platform Milkywire. PYMNTS
Banks are best placed to drive installments market forward
Inflation and interest rates across Europe have reached multi-decade highs, and the providers initially driving the BNPL revolution are struggling to navigate this challenging economic period. Banks are the most suitable custodians of installment solutions, like buy-now-pay-later (BNPL), argues Episode Six CEO and Co-Founder John Mitchell. FinTech
Is it too late to buy Affirm Holdings stock?
Affirm’s stock price fell 90% in 2022 as its BNPL business model was squeezed by inflation and rising interest rates. Affirm’s frothy valuations drove investors toward more conservative investments. By the end of 2022, it was deeply unprofitable, and many competitors were carving up the BNPL market. Despite all those challenges, Affirm’s stock has nearly doubled in value since the beginning of 2023. Let’s see why Affirm’s stock bounced back — and if it’s too late to chase that rally. Motley Fool
Prescriptive regulatory approach would unduly constrain BNPL providers: MAS
Relying on an industry-led code consistent with MAS’ expectations is a good way to foster compliance. A more prescriptive regulatory approach would unduly constrain BNPL providers and limit consumer choices. It would also not be commensurate with the risks posed by such schemes, given that the total value of BNPL transactions is only 1% of total debit and credit card payments for 2022. The Business Times