Wisetack is betting on new bank partnerships to continue the growth of its B2B BNPL services. Tabit will offer Jifiti’s white-label loan platform for its B2B customers in Canada. Block and PayPal’s BNPL operations showed increased volume and optimism, although Block closed BNPL ops in France, Spain, and Italy due to profit challenges.
KBW analyst Sanjay Sakhrani told The Financial Brand he’s not optimistic about standalone BNPL operators despite revenue volume growth at some big global industry leaders. CarParts.com CEO David Meniane celebrated 14 consecutive quarters of growth and said BNPL is helping owners keep older cars on the road and in good shape.
In the Middle East, BNPL is considered Sharia-compliant, contributing to consumer growth. While BNPL regulations are moving forward in 2024, the NZ govt looks ready to toss affordability tests. New research shows Gen X is also into BNPL, like younger generations. Stay tuned as Boomers look on.
Fintech Wisetack bets on bank partnerships for growth
Wisetack, which recently teamed up with Citizens, seeks to add more large bank partners to handle the lending aspect of its pay-over-time offering for the services industry. Wisetack has raised $64 million since its 2018 founding and works with tens of thousands of small services merchants through its software integrations. The average transaction size is close to $5,000. PaymentsDive
Fintech platforms leaning heavily on BNPL
Fintech companies report growth in BNPL payments volume, with PayPal, Block and other major players working to build market share in a crowded payment space. In recent earnings calls, Block/Afterpay and PayPal reported BNPL volume increases, highlighting their potential for future growth. Q2 sales volume at Afterpay jumped 22% over the previous year. ModernRetail
Embedded B2B lending to merchants in Canada with Tabit and Jifiti offer
B2B BNPL fintech Tabit announced a partnership with digital lending platform Jifiti to provide more loan options for business customers of Canadian merchants. Jifiti’s platform supports B2B and B2C point-of-sale financing options, including installment loans, split payments, lines of credit, and net terms. The white-label platform lets merchants retain full customer ownership and gain valuable data insights. Newswire.com
Block shutters some European operations
Block is closing several EU operations, including Cash App’s Verse brand, and shattering buy now pay later operations in Spain, France and Italy. In the EU, Block’s BNPL subsidiary Afterpay operates as Clearpay. CEO Jack Dorsey said these regions require substantial resources and were not generating the expected profits. Block acquired Afterpay in 2021 and purchased EU P2P operator Verse in 2020. PaymentsDive
Will FedNow and BNPL dent credit card use?
Will FedNow get any traction beyond business payments? Are standalone BNPL firms that pioneered the sector going to fizzle? Should consumers avoid the pay-by-bank trend? KBW analyst Sanjay Sakhrani takes a critical look at the hottest payment innovations and is doubtful about the prospects for standalone BNPL operators. Insider Intelligence forecasts the value of US BNPL payments will reach $94.9 billion in 2023, up 25% over last year. The Financial Brand
BNPL helps car owners pay big bills to repair aging vehicles
CarParts.com CEO David Meniane said BNPL helps car owners keep aging automobiles in shape, and he expects his company’s growth to continue. The company recorded its 14th consecutive quarter of growth. CarParts.com is an online provider of auto parts and accessories for a typical buyer persona who lives in Texas, has two kids and two vehicles, one of which is likely a pickup truck like a Ford F150 or Chevy Silverado. PYMNTS
What’s driving Middle East BNPL growth?
Precedence Research forecasts the BNPL market in the Middle East will roll from $7.2 billion in 2021 to $89 billion by 2030. BNPL is considered “Shariah-compliant” and growing in popularity with MENA consumers. UAE BNPL startup Tabby raised $58 million in a Series C round and increased its debt facility to $350 million. Egypt fintech startup MNT-Halan, which launched its BNPL service last year, raised $400 million in Feb. Cairo Scene
NZ govt tosses BNPL user affordability tests
Afterpay suggested the government require BNPL providers to do affordability tests on those seeking to borrow more than $1000. While new regulations to protect consumers are expected in 2024, according to the NZ Herald, an affordability test won’t be among the initial regulations. NZ Herald
Gen X likes BNPL as much as millennials
Don’t get lost in the stereotype jungle. BNPL is usually portrayed as a tool for younger consumers. 20.3% of millennials and 14.3% of Generation Z consumers used buy now pay later installments in the 90 days before the survey. But, Generation X, born between 1965 and 1980, proves that stereotype wrong, as 14.1% also used BNPL. PYMNTS