Despite less access to credit, BNPL users take advantage of more credit. UK millennials are paying for food and everyday essentials with BNPL, while Australians are prioritizing BNPL payments before other monthly bills. Affirm bails on returns payment platform Returnly while striking a deal with Loop Returns. Shares of BNPL payments pushed the market downwards last week, led by Affirm and Sezzle.
App Advisor picked Affirm, Afterpay, PayPal Pay in 4, and Sezzle as the best consumer BNPL apps. Amazon had another record Prime Day, and BNPL was in the mix. The Saudi Central Bank approved Tamara for a BNPL license. BillEase added BNPL for 230 National Bookstores in the Philippines aimed at back-to-school shoppers. India’s FuelBuddy introduced BNPL for fuel sales in 180+ Indian cities.
BNPL continues to find new market niches for growth!
BNPL users have less access to credit, but they outpace non-BNPL users in the use of credit products
Interest rates may have peaked, but their impact will likely echo in consumers’ financial health for some time. According to the Financial Health Network, Interest and fees from US credit card balances increased by 20% in 2022, reaching $113.1 billion. On average, credit cards now charge an all-time high 20.69% APR, 5% more than last year. Despite having lower access to credit, BNPL users are more active users of other credit products like credit and retail cards than non-BNPL users. TearSheet
Millennials are relying on Buy Now Pay Later to pay for bills, food and everyday essentials, study suggests
More than 17 million consumers in the UK have used a BNPL service, with platforms such as Klarna, Clearpay and Laybuy being some of the most popular. As BNPL becomes a mainstream payment method, we’re likely to see a rise in the number of people getting into financial difficulty. Focusing on debt, the survey also found that around one-third (32%) said they had experienced financial difficulties due to using a BNPL service. Fintech Finance News
Millions of Australians are prioritizing their BNPL payments before their monthly obligations
A Finder survey of 1,090 respondents revealed two in five (43%) Australians had used a BNPL account in the last six months. Of those with an account, one in three (32%) – equivalent to 2.8 million people – have skipped another bill to meet their BNPL repayments. Finder money expert Sarah Megginson said many are too reliant on installment payments. A shocking 14% have missed paying their energy bill to cover what they bought on BNPL, and one in 10 (9%) have disregarded paying for their personal loans to finance their shopping habit. ITWire
Affirm to shutter Returnly
Buy now, pay later provider Affirm said in a company web post Thursday that it will divest its Returnly unit, a returns payment platform it acquired two years ago. The “sunsetting” of that platform will occur by early October, the company said. Affirm purchased Returnly for $300 million in June 2021. Affirm is now increasing its work with another returns management company, entering a strategic partnership with Loop Returns. PaymentsDive
CE 100 Index sheds 1.1% as Affirm, Sezzle losses offset FIS sizzle
Affirm led to the downside here, sliding just under 11%. Piper Sandler downgraded the name to underweight and assigned an $11 price target. As noted in these digital pages, the rating cut came amid a discussion of the business model, depending in part on selling loans. Analysts have also noted the competitive pressures that may lie within the buy now, pay later space through new entrants, including Apple. PYMNTS
4 best buy now pay later apps for 2023
Buy now, pay later apps can help you afford larger purchases without pulling out your credit card or paying high interest rates. But what’s the catch? There isn’t one as long as you can pay up on time. Depending on the purchase, payments are spread out over a few weeks or months. Each app has different loan terms, annual percentage rates, and late fees. Check out the four best buy now, pay later apps for 2023. They include Affirm, Afterpay, PayPal Pay in 4, and Sezzle. App Advisor
Financing an Amazon Prime Day purchase? Here’s the best way (and 3 other options)
Layaway is the clear winner for patient shoppers, but here’s how BNPL and 0% introductory credit cards stack up. When it comes time to check out, Amazon offers several ways to finance your Prime Day order, including a layaway option that can help you avoid debt, enrolling in a buy now, pay later plan, financing it with the Prime Visa* card or using a credit card with a special introductory 0% financing option. But which is the best to choose? CNET
Saudi Central Bank grants permit to BNPL platform Tamara
The Saudi Central Bank has granted buy-now-pay-later platform Tamara a permit to pursue postpaid payment activity. With this move, four authorized companies are now offering BNPL solutions, accelerating the Kingdom’s plans to become a regional fintech hub. SAMA permitted Spotii, MIS Forward, and Madfu to provide consumer finance through the BNPL platforms. Arab News
National Book Store offers BNPL in partnership with BillEase
National Book Store and BillEase joined forces to simplify back-to-school shopping for Filipino customers. They aim to promote a cashless society by incorporating buy now, pay later services in over 230 National Book Store branches across Luzon, Visayas, and Mindanao, benefiting millions of Filipinos. BillEase, a consumer finance company, offers a range of financial services through its on-demand app, including personal loans, e-wallet top-ups, prepaid load, bills payment, gaming credits, and a customizable BNPL feature. Back End News
FuelBuddy launches Buy Now Pay Later to boost sales and broaden market presence
FuelBuddy, a leading doorstep fuel delivery startup, has unveiled a buy now pay later service that allows customers to purchase diesel on credit with zero interest and a 22-day repayment period in collaboration with a bank. The introduction of this new offering aims to enhance sales and expand FuelBuddy’s market presence, which currently serves both domestic and international markets, according to a top executive. FuelBuddy operates in 180 cities across India and two overseas markets. Silicon India