Big news as Splitit signs a two-year agreement with Visa combining Splitit’s instalments-as-a-service solution with Visa Instalments into a merchant credit card BNPL option. New Zealand reports a rise BNPL arrears reaching 10.5% as the NZ govt prepares to regulate the sector. Luxury resorts can reduce implied brand negatives of BNPL with smarter sales tactics including loyalty programs or call center discounts. Klarna’s US CCO says average order value is $100 and a better option than credit cards for many consumers.
Cisco launched a new pay later program for software, technology and services including used gear and partner services. BNPL is on an uptick in Africa with annual growth expected to reach 29%. In US black Americans and other consumers are increasingly using BNPL for food and essential products.
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Splitit Payments signs two-year instalments partnership with Visa
Splitit signed a two-year deal with Visa to offer merchants a new payment instalments solution embedded within its existing credit card process. The partnership offers a single point of integration for credit card instalments by combining Splitit’s instalments-as-a-service solution with Visa Instalments into a buy now pay later payment option. Merchants can then offer the embedded instalment within their existing credit card process for customers. The Market Herald
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Sharp rise in number of people getting behind on buy now pay later payments as overall consumer arrears climb
New information from the credit reporting agency Centrix shows people using buy now pay later (BNPL) schemes are drifting further behind on payments. The latest numbers, as of March this year, show the percentage of BNPL loans in arrears has risen to 10.5%. BNPL loans had been 7.6% in arrears four years ago and dropped lower than 7% in 2022. Credit card arrears grew in the past year from 3.9% to 4.9%. This rise in BNPL arrears comes as the NZ govt moves to regulate BNPL. Interest.co.nz
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Is ‘Buy Now Pay Later’ (BNPL) on brand for luxury resorts?
If you are a luxury or luxury-adjacent resort, could offering a buy now, pay later option expand your market and drive growth? BNPL has made inroads in travel with deals made between BNPL platforms and Expedia.com and Booking.com as well as airlines like British Airways and United Airlines. According to Accrue, luxury resorts nervous about their brand can use BNPL as a sales tool for call centers, a loyalty program perk, or a way to reduce discount pricing. HospitalityNet
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Buy now, pay later, shop forever, everything is fine?
David Sykes, Klarna’s chief commercial officer, texts with the Semafor’s Liz Hoffman about where the industry is going from here, whether he’s scared of Apple, and how AI could revolutionize shopping. “Our average order value is $100 in the US and we make a [creditworthiness] assessment on every transaction. Compare that to a credit card where you get $1,000s upfront, assessed one time.” He said it’s a fundamentally different business model than credit cards with a 30% interest charge. Semafor
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Cisco wants you to buy now, pay later
Cisco announced a new finance program that encourages customers to buy products and services now without having to start paying for them till 2024. The Cisco Capital Business Acceleration Program will let Cisco partners also offer customers the pay later option. Eligible products include hardware, software, services, select partner services and third-party hardware. Cisco Refresh certified remanufactured products are also eligible for organizations that want to acquire used gear. NetworkWorld
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New payment methods, incl BNPL, in Africa continue strong growth
BNPL platforms recorded transactions worth $112 billion last year and should grow to $437 billion over the next five years. BNPL platforms in the region include Lipa Later in Kenya, Jazika in Tanzania, Moovah in Uganda and Nxt in Rwanda According to a recent report by ResearchAndMarkets, BNPL payments in the Middle East and North Africa (MENA) region are expected to grow by 29.1% on an annual basis. The BNPL payment industry in the MENA has recorded strong growth over the last four quarters. The North Africa Post
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People are using buy now, pay later to make ends meet
More consumers are saying yes to buy now, pay later offers. And not just for instant gratification on big-ticket items like a couch or a laptop. Struggling families are using it to spread out payments for essentials like food. Bloomberg reporters Augusta Saraiva and Paulina Cachero join this episode to talk about the popularity of buy now, pay later services–and the fees for those who fall behind on payments, including a single mother. Bloomberg
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Black Americans are Turning to ‘Buy Now, Pay Later’ Apps to help offset the cost of groceries
According to the Bureau of Labor Statistics, the cost of groceries rose by 8.4% this year, a trend experts call the worst inflation outbreak in four decades. Five of the main US BNPL lenders opened loans worth $24.2 billion in 2021 – $22 billion more than those reported in 2019, according to the Consumer Financial Protection Bureau (CFPB). The risks from BNPL debt for Blacks and Hispanic consumers appear to grow along with other US consumers. Black Enterprise
Recent BNPL Report news:
New US–Canada BNPL research report published with in-depth analysis, research and profiles of leading service providers, More info here.