Klarna adds AI image recognition for shoppers, aiming to take on Google and Amazon with AI shopping images. EU regulations haven’t stopped BNPL growth, as 54% of consumers under age 35 have used at least one provider. The new Zilch Up credit plan will help consumers get affordable, more flexible credit with the ability to switch between payments between credit and debit cards. Sweden’s newest BNPL provider, Waylog, now serves more than 50,000 businesses — impressive growth since launching in 2022.
Marqeta and Scalapay signed a five-year deal to expand BNPL services to Scalapay’s five million-plus users. Equipifi and Jack Henry partner to enable BNPL services for customers of regional banks. Research shows consumers want BNPL cards to offer credit card-like features such as higher limits, rewards, easier sign-ups, and longer installments. Two new research reports suggest BNPL plans contribute to financial pressure on young consumers, with trouble on the horizon.
Klarna takes aim at Google and Amazon with AI image recognition for shopping
A new feature in the Klarna app will let users point their phone at an item of clothing or electronics gadget and find results for similar products. The tool is trained on data from PriceRunner, a price comparison service Klarna acquired for close to $1 billion. Klarna has been looking to AI to help it become a leaner business as it, like plenty of other fintech firms, push aggressively toward profitability. CNBC
Despite regulation, BNPL continues to grow in Europe
According to a recent report from Auriemma, more than half of cardholders (54%) under the age of 35 have used at least one BNPL service. Separate data from UK Finance revealed that pensioners using a BNPL service doubled in 2022 compared to the prior year. The Auriemma survey found that respondents were keen on BNPL and overall, had a positive experience using this particular payment service and 91% of respondents agreed. PaymentsJournal
Zilch launches Zilch Up to provide access to more affordable credit
The solution, known as Zilch Up, offers all the advantages of Zilch’s zero-interest, ad-subsidised borrowing while introducing a novel feature—credit score improvement. The product is designed to equip customers with the tools to enhance their credit scores and expand their credit limits. With initial credit limits as low as £50, Zilch Up maintains the potent features of the original Zilch product but incorporates key adjustments tailored to its target users. Fintech Global
Sweden: BNPL Waylog reports solid growth helped by Froda partnership
Young BNPL provider Waylog reports solid growth. Founded in 2022, the Swedish fintech reports going from SEK 20 million to over SEK 500 million ($46 million USD) and now serves more than 50,000 companies in the Nordic countries and UK with plans for global growth. The Waylog platform lets users apply for a free credit limit, which can be used to pay up to 120 days before repayment is due. Crowdfund Insider
Marqeta announces partnership with Scalapay to deliver EU BNPL
Marqeta continues EU bookings momentum by announcing a new partnership with Scalapay, Southern Europe’s leading BNPL provider with over five million customers. Once a Scalapay consumer is approved for a loan and completes a purchase, a virtual card is instantly created and funded for the exact amount. This card can be immediately used for payments online and in-store through a digital wallet and via the existing checkout or POS. BusinessWire
Equipifi partners with Jack Henry to bring BNPL to banks
White-label SaaS company Equipifi teamed with fintech firm Jack Henry to offer a BNPL tool to regional financial institutions. Via the partnership, FIs can offer split payments through debit cards using Equipifi’s BNPL solution. By integrating the technology into the Jack Henry digital banking platform, FIs can provide cardholders with a BNPL payment option. PYMNTS
Galileo, Mastercard partner to extend installment financing options for small businesses
Galileo Financial Technologies and Mastercard have partnered to enable lenders to extend BNPL to SMB clients, in a move to equip small businesses with flexible financing options and increase their cash flow. The offering can be customized according to the financial needs of SMBs, however customization depends on the particular bank or fintech lender offering the solution. Tearsheet
One-third of consumers say higher credit limits will boost BNPL appeal
According to a PYMNTS Intelligence-AWS study, credit card installments are currently used more frequently and for larger purchases compared to BNPL because they offer features BNPL lacks. Consumers expect BNPL to offer the same features as credit card installment plans, with most BNPL users (38%) citing rewards as the top feature with BNPL lenders. More in-store availability and higher credit ( 32%) and easier application process and longer installment plans (27%) followed. PYMNTS.
BNPL’s dark side: Younger consumers face credit trouble ahead
Two studies — one from the NY Federal Reserve Bank and the other from Morning Consult — suggest BNPL plans are big contributors to the financial pressure on consumers who use them. The Fed goes so far as to warn that a large share of BNPL users are ‘financially fragile.’ What providers do next will impact the growth trajectory for this lending segment. Other consumer lenders should also take heed. The Financial Brand