So far, banks aren’t buying into BNPL, which could cost them. But Shopify likes it enough to work with UK’s Hokodo to help encourage B2B installment payments. VCs still have enough faith in B2B BNPL to drop $58 million on OatFi, while Tropic and Tranch help software buyers get technology now and pay later. New research shows 29 million US consumers bought now and paid later in 2021, and big-ticket items like medical payments are on the prescription list.
Apparently, fraudsters like BNPL, too, because delayed payments create new fraud opportunities. Research shows nearly half of Gen Z shoppers will use BNPL this holiday season. Across the pond in the UK, Deliveroo’s eat now, pay later is giving some experts indigestion. Finally, we wrap up with a look at the top five Australian BNPL ASX-listed companies and tap into the top FIVE BNPL payment apps. Just another step in the buy now, pay later consumer journey.
How banks are responding to the BNPL trends
Almost no banks have brought their own BNPL offer to market, despite the appeal to consumers and merchants. The fact that traditional banks haven’t been able to jump on the wagon quickly enough should serve as a cautionary tale. In this era of rapidly accelerating innovation in the payments space, banks need to reevaluate their strategy while growing their business through new payment transaction methods (many banks earn more than a third of their revenues from payments). The Paypers
Hokodo provides BNPL plugin for Shopify merchants
Leading B2B buy now, pay later provider Hokodo announced a new plugin for global e-commerce platform Shopify. This integration will enable B2B merchants with a Shopify webstore to offer instant credit terms to their limited company and sole trader buyers while getting paid upfront and remaining protected from the risk of non-payment and fraud. Merchants have seen an uplift of 40% in conversion rate and a 30% increase in basket size. Finextra
OatFi secures capital to power BNPL services for SMBs
Facing the headwinds, rather than pull out of BNPL altogether, investors appear to be shifting bets to what they perceive as a safer subcategory of BNPL: business-to-business (B2B) BNPL. The beneficiaries are startups like OatFi, which emerged from stealth with $7 million in new equity and $50 million in debt for its platform that provides working capital infrastructure for B2B payments platforms. Techcrunch
Tropic announces partnership with Tranch, unveils BNPL for SaaS to its customers
Tropic partners with BNPL provider Tranch to allow customers to pay software costs on their terms. Tropic customers reduce their annual SaaS spending by 20%, while the BNPL option gives companies flexibility in payment options, giving high-growth companies more control over their cash flow. Tropic customers submit invoices via Tranch, which pays SaaS suppliers upfront. Customers then repay the balance over any term of up to 12 months. BusinessWire
PYMNTS Intelligence: BNPL providers take aim at medical and education payments
29 million US consumers leveraged BNPL to make purchases in 2021, and 59% said they would be willing to use third-party BNPL solutions. Americans are branching out to more unusual BNPL use cases, such as education and medicine, due to a lack of interest rates as long as the payments are made on time, an attractive option for big-ticket purchases beyond just merchandise. PYMNTS explores how consumers leverage BNPL to pay for services rather than retail and the benefits of doing so. PYMNTS
‘Emerging’ BNPL fraud among risks to online retailers, says study
New research on online payment fraud has calculated that the cost to e-commerce merchants will exceed $48 billion globally in 2023, with emerging methods, such as BNPL fraud, proving lucrative for thieves. The risk is exacerbated by the delayed nature of the payments giving fraudsters a bigger opportunity to make illegitimate payments using stolen cards before red flags are raised. The research recommended that BNPL vendors use identity verification. Cycling Industry News
The top 5 buy-now-pay-later stocks on the ASX
Australia is home to some of the world’s leading buy-now-pay-later platforms, whose share prices surged during the early days of the Covid pandemic. ASX-listed BNPL stocks, such as Afterpay, skyrocketed during the pandemic. They’ve since tumbled to multi-year lows in 2022, as heavy inflation and interest rate hikes create uncertainty for consumers. BNPL stocks could see their share prices bounce back before long if central banks ease up on rate hikes and consumer sentiment improves. IG 6
Nearly half of Gen Z millennials to rely on buy now, pay later this holiday
A Bluedot survey found almost half (48%) of Gen Z respondents plan to use BNPL services this holiday season, followed by millennials (47%), Gen X (40%) and baby boomers (14%). 19% said they use BNPL services because they’re low on cash. The share of BNPL transactions in e-commerce revenue rose by 5% between January and September compared to last year, per a recent Adobe Analytics report. 43% said they missed at least one payment. Retail Dive
Deliveroo is now offering eat now pay later – and it’s divided opinion
Takeaway service Deliveroo is now offering an “eat now pay later” scheme, which has divided opinion. The popular website has partnered with buy now pay later (BNPL) giant Klarna to allow customers to pay for their meals in installments. Meanwhile, rival Clearpay is offering Just Eat vouchers, although the latter doesn’t have any BNPL payment options. The Sun UK
What Is the best buy now, pay later app? See how 5 options compare
Buy now, pay later apps vary by interest rates (although all offer interest-free options), payment plans, retail partners and potential effect on your credit score. We examined the features of five apps to help you find the best choice for your purchasing needs. None of the services we looked at impacted credit scores (thanks to the use of a soft credit check) or reported to major credit bureaus. We compared the five top competitors: Affirm, Afterpay, Sezzle, Klarna and PayPal. The Penny Hoarder