A SimilarWeb analysis of web traffic shows 21% growth in visits and monthly active users in the 14 biggest BNPL providers. Securities firm Mizuho predicts a modest 2% headwind for BNPL companies from the impact of student loan repayments returning. Amazon and Chase expanded their BNPL program outside of Amazon’s website and app for Amazon Visa cardholders.
Splitit plans to continue the growth of its B2B BNPL business, targeting underserved businesses niches. UK finance platform Deko and BNPL provider AeroCommerce plan to enhance merchant checkout installment options. UK BNPL sales could reach $55 billion by 2028 if new regs don’t take the steam out of growth. Jumia announced early plans with more than 10 banks to introduce BNPL and other African countries in the future.
The meteoric rise of the buy now pay later industry
According to SimilarWeb, 37% of US consumers used BNPL with 27% using it in the past 12 months. Desktop & mobile traffic to the 14 biggest BNPL providers grew 21.1% CAGR between 2020-2022, from 236.8 million visits in 2022 to 420.8 million in 2022. Monthly active users for the top six BNPL providers in Jan 2022 was 11.2 million – 200% growth from 2021. SimilarWeb
Mizuho claims BNPL student repayment worries overblown
Analysts reviewed the potential impact of student loan repayments on the BNPL industry. They forecast 50% of students could see a reduction of up to $3,000 or 4% of household income. They predict the headwinds on the industry an estimated 2% and the risk of higher use of BNPL. On the positive side, students with loans tended to have higher incomes. Investing.com
Amazon and Chase expand BNPL installments to Amazon Visa
Amazon and Chase expanded their equal monthly payments offer for Amazon card members shopping outside of Amazon’s website and mobile app. The plan allows six equal monthly interest-free payments for purchases over $50 and 12 monthly payments over $250 at tens of thousands of retailers, including Lenovo, Tennis Express and Authentic Watches. PYMNTS
Splitit targets areas BNPL rivals have ‘underserved’
The installment payments company aims to more than double its B2B merchant sales volume by mid-next year, CEO Nandan Sheth said. Currently, B2B makes up 12% of the company’s merchant sales volume. Splitit seeks to grow that to 30% by midway through next year, he said. Splitit’s also taking aim at transactions where traditional BNPL players might be pulling back on approvals as they’ve tightened underwriting, such as with large average ticket merchants. PaymentsDive
Deko and Aero Commerce partner on checkout finance solutions for merchants
UK checkout finance platform Deko partnered with BNPL provider Aero Commerce to enhance the platform offer and technology. Aero is an e-commerce platform with a network of 150 specialist e-commerce development agencies. According to a recent study published by NewDay, 45% of respondents worry that BNPL services could get them into debt, while 78% prefer a regulated BNPL option over an unregulated one. Electronic Payments
BNPL firms fear regulation changes not fit-for-purpose
It’s not surprising that without the due diligence “friction” that comes with traditional loans, merchants have found BNPL to be a powerful tool in getting sales over the line. This simplicity has propelled the UK sector from small beginnings to US$27.3 billion (£21.5bn) in 2022 and a projected US$55.1 billion by 2028. BNPL lenders will have to undertake mandatory affordability assessments and be subject to “lender liability” under section 75 of the CCA. FTAdvisor
Jumia could soon roll out a BNPL solution in Egypt
Jumia is developing BNPL solutions for consumers in partnership with 10 banks and fintechs in the North African country. As part of a move to drive adoption of the JumiaPay app, the company’s partners will be responsible for credit underwriting and loan disbursement. Jumia is also working on increasing the number of payment options available on the JumiaPay app and a white label solution as seats with plans to launch JumiaPay on delivery in Ghana, Morocco, and Uganda. Techpoint Africa