BNPL could help small business get paid faster. Walmart plans to offer its own buy now pay later installments could spark retailers to explore the option. Black Friday saw a spike of 70 percent for BNPL companies compared to the previous week. Interest-free installments may be booming, but the Washington Post says problems are growing too for consumers.
By 2024, UK BNPL could reach 10% of the total e-commerce transactions. The Reserve Bank of India introduced new BNPL regulations as adoption grew 22% in the first half of 2022. In Mexico, buy now pay later sales should grow 55 percent and reach $4.57 billion by year-end. In the Philippines, UnaPharma plans to launch BNPL and delivery services for prescriptions.
B2B is the new driver of growth for buy now, pay later
B2B spending remains one of the biggest financial services sectors in the world, and yet it traditionally lags behind the B2C sector in innovation. In 2018 global B2B payments hit $125 trillion, while the global consumer payments market only reached $52 trillion. With businesses still facing cash flow issues due to pandemic ripple effects, they’re looking for ways to receive money faster. The B2B space needs a secure and simple way to process payments, which could come in some form of BNPL. Retail Touch Points
Walmart-backed fintech startup plans to launch its own buy now, pay later loans
A Walmart-backed fintech startup plans to launch a buy now, pay later option as soon as next year, according to a source familiar with the matter. The retail giant is the majority owner of One, which is led by Goldman Sachs veterans. It plans to launch the new payment method as some Americans show signs of strain from inflation driving up food prices, housing and more. The impact on its current BNPL provider Affirm is unclear. CNBC
Buy now, pay later revenues surge up 70% ahead of the holidays
BNPL companies had a major jump in online sales during the week of Black Friday (Nov 21 to Nov 27) up 68% compared to the previous week, according to the latest Adobe Analytics. CNBC’s Small Business Survey reported higher BNPL popularity among Black and Hispanic Americans with 12% of Blacks and 13% of Hispanic Americans saying they use BNPL for holiday purchases, compared to only 5% of white Americans. Forbes
Opinion: ‘Buy now, pay later’ is booming. So are its problems.
About 4% of online transactions in North America are done this way, and usage surged nearly 70% over the week of Black Friday. Last year, 10.5% of users were charged at least one late fee, and several signs indicate delinquencies continue to rise in 2022. Users complain it is difficult to get refunds and issues can ding their credit score. Nearly 70% of users say they spend more using these products than they would otherwise. Washington Post
Fintech is creating new opportunities for British businesses
At current rates of growth, BNPL could account for 10% of all UK e-commerce spending by 2024 and it’s clear why this payment method is becoming increasingly popular. A win-win for both consumers and retailers, Clearpay generated £739 million in incremental sales for UK merchants in 2021 and delivered £403 million in net economic benefits through improved revenue streams, delivering higher average order values and increased sales. Fintech
RBI’s policy on tightening BNPL: Limiting consumer demand or boosting saving
The Reserve Bank of India announced new guidelines for BNPL players amid reports of increased irregularities. These interventions will temporarily slow down the BNPL industry and reduce consumer demand. The impact will not last long. The industry and consumers are likely to adjust to a more sustainable transaction mode. Consumption is likely to return without any real impact on savings. Experian reported India’s BNPL transactions surged 22% in the first half of 2022. Financial Express India
Mexico BNPL payments expected to grow 55.1% to reach $4.57 billion by end of 2022
BNPL payments are expected to grow by 55.1% on an annual basis to reach US$4,576.6 million in 2022. Medium to long term growth story of BNPL industry in Mexico remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 22.8% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$2,951.1 million in 2021 to reach US$15,728.7 million by 2028. BusinessWire
Online pharma platform to launch delivery service, BNPL option
UNAPHARMA, a digital medicine reservation platform, will launch its delivery service and a buy now, pay later (BNPL) option in January 2023. UnaPharma, which allows customers to compare drug prices, has 400 pharmacies on its platform. It requires its members to have a license to operate from the Food and Drug Administration. Statista values the Philippine digital health market at $684 million, with 12.7% growth potential for 2022–2027. BusinessWorld
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