In an interesting financial report comment, Apple’s CFO said the company sold over 50% of iPhones through trade-ins, installment payments, or other financing. Patients in the UK increasingly use BNPL loans for basic healthcare, creating concern among consumer watchdogs. A WEF-Deloitte study suggests chronic overborrowing and bank loan delinquencies could grow without credit agency reporting of BNPL loans.
Down under, Zip’s quarterly bad debts reached 3.1% in Australia, its highest since Q1 2022. Keep an eye on that figure during tougher economic times. Increased use of BNPL by older shoppers is adding to growth, according to Afterpay’s “State of Retail” report. Canadian BNPL sales are expected to reach $9.6 billion by the end of 2023. US Democratic lawmakers are lobbying for hefty fines for BNPL-financed semiautomatic weapon sales.
Qatar Central Bank plans to license BNPL service providers as part of a push to modernize financial services. Tabby added big Middle East retailer Lulu Group to its BNPL client roster. New BNPL operators in Kenya will help the country reach more than $1 billion in BNPL sales by year-end.
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Apple says 50% of expensive iPhones purchased with installment payments
In an earnings call, CFO Luca Maestri said, “Today, the majority of iPhones are sold through a program, trade-in, installment payment, or some form of financing. This percentage, which is well over 50%, is very similar in developed and emerging markets. We want to do more, because we think it really helps to lower the accessibility threshold of our products. And we think that’s also one of the reasons why our product line has been very strong.” Gearrice
Buy now pay later medical loans rise as desperate patients go private over NHS backlog
Health experts are warning of growing debt from BNPL loans for basic healthcare. MRI Plus promotes BNPL plans financed by Klarna for MRI scans and other diagnostic services. Chrysalis Finance offers “quick and easy” financing for medical loans from £1,000 to £25,000 for private hospital treatments. About 5% of customers at Scan.com’s 150 centers have used interest-free BNPL payments via PayPal for MRIs, CT scans, ultrasounds and X-rays. The Guardian
BNPL loan programs are taking off despite providers non-reporting to credit bureaus
Chronic over-borrowing and bank loan delinquencies could grow from non-reporting to credit bureaus of BNPL loans, according to a report from the World Economic Forum (WEF)and Deloitte. BNPL loans in Canada could reach $9.6 billion in 2023, a 20% increase. Deloitte said the “loan-stacking” could be prevented by credit reporting of BNPL loans. Toronto Star
Zip’s credit performance in AUS weakens
Zip reported increased bad debts in Australia during its March-June quarter results because of local economic conditions, poor domestic consumer credit and discrepancies with third-party payment processors. It said Australia’s June-quarter net bad debts were 3.1%, its highest since Q1 2022. Q4 revenue US $131.26 million, up 21.1% over last year, along with a 6.4% jump in transaction volume, assisted by stronger US results. Reuters
Older shoppers testing BNPL as services go mainstream
Older demographics are trying out BNPL for more lifestyle purchases and as a new budgeting tool. Afterpay’s “State of Retail” report shows that the number of Afterpay orders from Gen X shoppers increased by 16%, while orders from Boomers jumped 12% over last year. Spending on luxury items, spas, cultural and recreational activities and entertainment trended higher than retail sales. Afterpay
Lawmakers target BNPL loans for semiautomatic weapons
Nineteen US Democratic lawmakers want a ban on BNPL loans to finance semiautomatic weapon purchases and would levy hefty fines of up to $100,000 on companies enabling transactions and dealers accepting them. Promoting “shoot now, pay later” Credova finances gun purchases while other BNPL operators like Klarna and Afterpay do not. BNN Bloomberg
Qatar Central Bank will license BNPL service providers
Qatar Central Bank (QCB) plans to license BNPL service providers, asking for applications from companies hoping to offer buy now pay later services in the Arab nation. QCB hopes to regulate BNPL providers in conjunction with other financial sector companies as part of its effort to upgrade and modernize the country’s financial services industry. MENA-FN
LuLu Hypermarket adds Tabby BNPL payment options for back to school
LuLu Hypermarketshoppers in the Kingdom of Saudi Arabia can easily use their credit or debit cards to pay for purchases at LuLu online or in-store in four payments with no fees or interest. Abu Dhabi, UAE-headquartered LuLu Group operates more than 215 stores and 13 hypermarkets in Saudi Arabia, across the Middle East and India.
All the BNPL options now available in Kenya
BNPL payments could grow by 23.2% annually to reach US$1.05 billion in 2023. Expansion in the BNPL ecosystem in the African country has been sparked by the Kenyan consumer’s appetite for flexible and affordable payment options. Among the BNPL operators mentioned are M-KOPA, Lipa Later, Flexpay “Lipia PolePole,” Faraja, and Spotit. Techweez
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