What’s behind Amazon Pay’s BNPL strategy? The Financial Brand evaluates what’s ahead. Global payments platform APEXX and Klarna partner to provide flexible BNPL payment options for global merchants. Like it or not, David Burch says regulations are coming for BNPL in the UK. Yaacov Martin explains why embedded payments are a better option for merchants than BNPL
BNPL was used by 16.8% of UK consumers in may and Clearpay’s Rich Bayer expects more growth for retailers. In just 2 days, Qatar regulators received 25 applications to provide my now pay later services. BNPL is gaining traction as a popular payment preference among US consumers at 28%, according to JD Power research.
The strategy behind Amazon Pay’s BNPL push
Even Amazon can’t ignore the popularity of buy now, pay later. The retail giant – also a powerhouse in payments – is setting up two different BNPL programs for retailers using Amazon Pay on their websites. The moves set Amazon up ahead of the traditional holiday shopping season with multiple bets in what is a growing sector of payments. One chip is on a fintech BNPL specialist, Affirm, and the other is on the nation’s biggest bank, JPMorgan Chase and its Visa cards . The Financial Brand
APEXX and Klarna shake hands for global flexible payments
APEXX Connect’s reach will broaden with this partnership, making its services available in over 50 markets. This expansion enhances APEXX’s dedication to cater to a global audience across all pivotal markets. By integrating Klarna into the APEXX Connect platform, merchants can now easily host buy now pay later services through a unified API. FinTech Global
Sooner or later, regulators will focus on BNPL
More than one-third of all Brits have used BNPL services (more than 19 million people), a fraction that has doubled over the last two years. It’s the fastest-growing online payment method in the UK, growing at double that of bank transfers and triple that of digital wallets. When it comes to online purchases, BNPL currently takes up 5% (£6.4 billion) of the UK market and shows a 200-300% annual growth rate. It is expected to account for 10% of all UK e-commerce spending by 2024. Forbes
BNPL may be all the rage, but embedded lending is a better option for merchants
According to Juniper Research, 360 million people worldwide used BNPL in 2022. What sets embedded lending apart from BNPL? Embedded-lending providers can help merchants offer a wider range of B2C financing options, including lines of credit, installment loans, and various B2B payment plans such as deferred invoice and working capital. Digital Transactions ast year alone saw a growth of 286% and 20% for Gen X and Boomer use of Clearpay respectively. Digital Transactions
How BNPL can provide unexpected growth avenue for UK retailers
As older shoppers catch up with their younger counterparts, BNPL’s popularity as a payment option has jumped. BNPL made up 16.5% of all UK ecommerce spend in May 2023, marking a steady increase from January’s already considerable 12%. Retailers targeting an older consumer profile can now also use innovative payment options such as BNPL to appeal to their customer base. 365 Retail
Qatar Central Bank receives 25 applications from fintechs for BNPL
In just two days after its launch, the Qatar Central Bank (QCB) has received as many as 25 applications from fintech companies to offer ‘Buy Now Pay Later’ (BNPL) services, indicating the growing prominence of digitalization in the country’s growing e-commerce space. A minimum capital of QAR 5 million ($1.37 million) will be required by the BNPL provider as initial paid-up capital or 15% of the outstanding loans, whichever is higher. ZAWYA
BNPL gaining payments popularity
JD Power research shows the most popular payment preferences by US consumers: Following debit and cash in usage preference are credit cards, 66%; digital wallets, 36%; gift cards, 33%; buy now, pay later, 28%; merchants’ payment apps, 20%; checks, 19%; prepaid cards, 14%; pay by bank, 7%; and cryptocurrency, 3%. Buy now pay later is gaining traction. Many consumers use multiple payment types. The Financial Brand
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