IKEA is a late entrant to BNPL for retail, but it has good reasons. IDC research shows BNPL will grow nine times through 2025 in SE Asia, reaching $8.83 billion. Goldman Sachs dumps BNPL leader GreenSky after just two years, citing losses. London UK’s Fly Now Pay Later stopped BNPL lending and onboarding new customers while “reorganizing its business.
While boomers like their credit cards, younger generations prefer alternate payments like BNPL. Watch for a jump in BNPL spending during the 2023 holiday shopping season as embattled consumers look for ways to extend their shopping budgets. More than 900 million consumers will use BNPL globally by 2027 and challenger banks are taking note.
Ikea adds BNPL late in the game — why?
Ikea uses Afterpay to offer customers the ability to pay using BNPL for purchases ranging from $40-$500. The company said it decided to take time to assess other BNPL retailer offers. IKEA believes it’s lower credit limits will that they have others maintain the financial health of consumers and avoid higher defaults and risk that tend to come with higher credit offers. Digital Commerce 360
BNPL to grow nearly 9-fold through 2025 in Southeast Asia
Estimates by International Data Corporation (IDC) indicate that in 2020, BNPL options were used to purchase $900 million worth of goods on e-commerce platforms, a sum which the organization expects will rise by nearly ninefold to $8.83 billion in gross merchandise value (GMV). Fintech News Singapore
Goldman Sachs offloads ‘buy now, pay later’ firm in quick retreat
Goldman sells the consumer lender GreenSky after significant losses, less than two years after buying it. Goldman will take an immediate loss from the transaction in its third-quarter earnings, which are due out next week. The bank is selling GreenSky to a group of money managers, including the private-equity firms Sixth Street and KKR. New York Times
Fly Now Pay Later, which raised nearly $180M, stops lending, onboarding new customers
Fly Now Pay Later, which launched in 2015, is looking to tap into the boom around BNPL but has now temporarily stopped lending and taking on new customers. The London-based startup said it made the decision to stop lending and onboarding new customers as it was “making improvements“ to its business. The website notice said existing accounts would continue as usual. Tech.eu
Boomers reach for credit cards, millennials lean more on BNPL to pay for leisure travel
While credit cards remain the preferred choice for the majority of travelers, there are distinct differences between older and younger generations. Older generations tend to opt for credit cards, while the youngest generations lean more toward BNPL options. 76% of baby boomers and seniors preferred credit cards, while only 53% of GenZ consumers did. Gen X consumers and millennials fell in between, with 67% and 63% respectively using credit cards for travel expenses. PYMNTS
Nearly 3 in 4 shoppers rely on installment plans to control holiday spending
More than three-quarters of shoppers are planning to use these installment plans more heavily this holiday season, with 41% of shoppers expected to increase their use of installment plans for holiday purchases. These are some of the key findings detailed in “The Role of Installment Plans in the 2023 Holiday Shopping Season,” a recent report by PYMNTS Intelligence. PYMNTS
Adobe forecasts 4.8% bump in holiday sales
Adobe Analytics recently forecast holiday sales (Nov 1 to Dec 31) to increase by 4.8% year-over-year. Adobe said never-before-seen discounts, and the increased usage of BNPL spending will drive spending this season as consumers look to stretch their budgets when making purchases. Shopping on mobile devices is expected to hit a major milestone, surpassing desktop, and driving over half (51.2%) of all online spending this season. ALM
Compass Plus Technologies: Who will win the BNPL race?
More than 900 million people worldwide will use BNPL by 2027, compared to 360 million in 2022, according to Juniper Research and the most compelling reason for this popularity and growth is that it is predominantly driven forward by consumer demand. Agile challenger banks are publicly gaining traction, the race for BNPL market share is well and truly on and anyone not actively getting involved will be left behind. The Fintech Times