Rumors are the UK guv may shutter plans for a crackdown on BNPL, concerned about availability of low-cost loans after $13 billion made available to UK consumers in the past three years. 60% of millennials would buy into BNPL from their bank. Klarna AI technology puts tailored product suggestions and features in the hands of users. Affirm debuts its new Debit+ Card with – wait for it – BNPL at point-of-sale. Amazon Prime Day shoppers spent a record amount, with 6.5% using BNPL to get their favorite deals.
Is fashion BNPL plateauing? That is the question in the UK. ZestMoney clings to life after a collision of Indian regulations, founder exits, write-offs, intense competition, and a challenging business environment.
Consumers want BNPL but can providers pivot fast enough to survive and grow? Watch for consolidation on the horizon.
Treasury poised to shelve crackdown on buy now pay later sector
The government is poised to shelve plans to crack down on Britain’s fast-growing BNPL industry amid Whitehall concerns that it could curb the availability of low-interest products. Sky News learned Treasury officials were told during recent talks with the industry that some of its biggest players could quit the UK market if subjected to “heavy-handed” regulation. Over £10 billion ($13 billion) has been lent to consumers by BNPL companies in the past three years. Sky News
60% of millennials are interested in BNPL plans from their banks
PYMNTS research showed that a significant percentage of consumers want access to BNPL plans offered by banks rather than fintechs, at 70% of respondents. Thirty-six percent of respondents who were not currently BNPL users said they would opt for one offered by a bank over a fintech. For the FinTechs, the competitive landscape may heat up a bit. Seventy-nine percent of Afterpay‘s users, 84% of PayPal Pay in 4 users and 82% of Klarna users would be more interested in a bank-issued BNPL product, the report found. PYMNTS
Klarna continues to bet big on its AI shopping feed
After setting its sights on the future of retail by introducing an AI-powered personalized shopping feed, Klarna continues to revolutionize the consumer shopping experience by offering tailored product recommendations and a range of innovative features. AI technology is helping the company enhance the overall shopping journey for its users by allowing shoppers to connect with product advice experts through the Klarna app for personalized assistance and guidance. PaymentsJournal
Affirm pops as new Debit+ card seen ‘gaining traction’
Affirm Holdings gained nearly 6% in pre-open trading Tuesday after Mizuho analysts raised their price target on the stock, highlighting that the company’s hybrid pay now, BNPL debit card, is “gaining traction.” The recently launched Debit+ card allows customers to buy now and pay over time at the point of sale in conjunction with the Affirm app. Mizuho analysts see the potential for ~250% volume CAGR from Debit+ through FY26. Investing.com
This one Prime Day stat says everything you need to know about consumers right now
Although Amazon doesn’t break out individual sales numbers, Adobe calculated online spending across US retailers on Tuesday at $6.4 billion, nearly 6% higher than last year. On Wednesday, spending totaled $6.3 billion, up 6.4% year-over-year. BNPL accounted for 6.5% of online orders on July 11-12, driving $927 million in revenue and growing 20% compared to the year prior. Use of BNPL platforms continues to be driven by discretionary categories, including apparel, furniture/home and electronics. Yahoo
This Amazon Prime Day, online shoppers used 20% more “buy now pay later” credit than they did in 2022
Amazon Prime Day easily made July 11-12 the biggest online shopping days of the year, with sales across the internet up 6.1% from the same period in 2022. Even more impressive—or alarming, depending on your point of view—was the 20% surge in the use of “buy now, pay later” (BNPL) plans to finance the splurge. According to Adobe Analytics, online shoppers used more than $927 million in credit from BNPL lenders to purchase items on July 11 versus last year, accounting for 6.5% of all orders placed. Quartz
Is fashion’s buy now pay later boom over?
Data indicates consumers appear to be scaling down their use of BNPL to smaller purchases and relying on it to manage their everyday expenses. The number of luxury shoppers using BNPL has dropped in 2023 after years of increases. Concerns are growing that a pullback could be on the horizon, though long-term expectations remain that BNPL’s adoption by consumers and retailers will grow. Business of Fashion
From Series C to Seed: The rise and fall of ZestMoney
A bruised ZestMoney has managed to live on after an emergency injection of up to $7 million from a group of investors, including existing backer Quona Capital. The extended lease of life comes after its key investor Prosus wrote off its investment worth $38 million in the firm: a radical move that would have sealed the fate of many startups. The investment write-off was part of a series of unfortunate events, which included a failed acquisition deal with PhonePe and a series of Reserve Bank of India guidelines and directives for BNPL firms. Entrackr