Rumors of the death of UK BNPL regs may be premature as the FCA CEO says the regulator is “ready” when government approves regulations. Apple Pay Later just keeps on trucking and growing according to new JD Power research. Consumer Reports warns shoppers to watch out for high-interest BNPL loans on some installment payment offers.
Warning lights flashing at Australia’s Zip as bad debts reached 3.1% despite revenue growth of 22.1%. Opn Payments partners with Atome to offer buy now pay later in Malaysia and Singapore, while Absa Bank Seychelles launches BNPL for its cardholders. BNPL keeps on building.
Regulator is ‘ready to go’ to bring BNPL firms under its scope
The chief executive of the Financial Conduct Authority has said the regulator is “ready to go”, when asked about bringing buy now, pay later firms under its scope. Questioned during a Treasury Committee hearing about reports that buy now, pay later regulation could be shelved, Nikhil Rathi told the MPs: “That has not been suggested to me in any of my interactions with ministers.” Enfield Independent
Apple appears to be making rapid inroads in buy-now-pay-later
Apple Pay Later is picking up adoption early in its journey, new research finds, with seemingly better uptake already than some incumbent services have. Apple didn’t quite match the might of BNPL services from PayPal used by 39% of respondents, or Block Inc’s Afterpay, used by 33%, but more users ended up paying with Apple Pay Later than with offerings from Sezzle Inc or Zip, two incumbent players that have made BNPL their bread and butter. MarketWatch
New buy now, pay later loans come with more risks
according to Consumer Reports, companies like Affirm, Klarna, PayPal, and Sezzle that offer interest-free pay-in-four loans also provide longer-term loans that can have high interest rates, confusing consumers. Unlike pay-in-four buy now, pay later loans, some of these newer offerings can involve what’s called a hard check on your credit, which can lower your credit score if a payment is missed. Consumer Reports
Australian BNPL firm Zip’s credit performance in local market weakens further
Australia’s Zip said it faced a jump in bad debts in Australia, its biggest market by revenue, during the March-June quarter due to poor domestic consumer credit and discrepancies with third-party payment processors. The company said Australia’s June-quarter net bad debts, written off as a percentage of the total transaction value (TTV), were 3.1% – its highest since Q1 2022. Q4 revenue rose 22.1% to A$193.8 million and transaction volume grew 6.4% over the previous year. The Business tTmes
Downsized Zip races after revenue jumps in June
Under-pressure buy now pay later group Zip recorded revenue and transaction growth in the double digits for the June quarter, sending its shares 9 % higher on Thursday. Zip has since moved away from its global ambitions to focus on the core US and Australian business, winding down its Middle Eastern division and selling the European and South African businesses for $20 million. Credit losses in the US slowed from 1.2 per cent to 0.85 per cent over the three-month period. Australian Financial Review
Opn partners with Atome for BNPL in Malaysia & Singapore
One-stop financial solutions company Opn announced a partnership with BNPL provider Atome to address the growing demand for flexible payments in Malaysia and Singapore. Opn’s online payment platform, Opn Payments, started offering the Atome BNPL payment method to meet the demand for flexible payment options. Consumers spread payments for purchases into three equal instalments ent over three months, without additional fees or interest. Opn
Absa Bank Seychelles launches buy now pay later for credit card holders
Clients of Absa Bank Seychelles now have the option of buying goods at any shop in Seychelles and paying later with the introduction of the bank’s new product. Payments can be up to three, six, nine or 12 months with a maximum purchase of SCR50,000 ($3,788), and repayment at lower interest rates than regular credit card purchases. Absa is one of Africa’s largest diversified financial services groups with a presence in 12 countries across the continent with around 42,000 employees. Seychelles News Agency
Recent BNPL Report news:
BNPL report: July 20 – BNPL apps drop, At Home, Guidefitter, Credova, Cashfree, UK regs fight