Splitit and AliExpress launched pay after delivery services in the US after success in the EU. Affirm shares surged 65% after strong Q4 results and net revenue of $446 billion, up 22%. Affirm’s CFO said the BNPL lender also sees cost of operations headwinds ahead. Payments provider Primer will provide Zip with optimized payment technology to accommodate US growth.
Alif Pay extends service offerings into the UAE, including BNPL. Europol chief Catherine De Bolle says fraud is growing as gangsters exploit BNPL application weaknesses and other new techniques. Affirm CEO Max Levin acknowledged regulations are looming and says BNPL operators need to stop avoiding the issue and figure out how to operate with new regulatory oversight.
Splitit enables US AliExpress shoppers to ‘Pay After Delivery’
Splitit, an embedded white-label platform that enables customers to pay by installments leveraging their existing credit on their bank-issued payment card at checkout, and AliExpress have announced the US expansion of the Pay After Delivery service following its successful rollout on AliExpress across Europe, including Germany, Spain, France, Italy, the Netherlands, the UK, and Australia. Splitit’s installment service is now also being offered in addition to Pay After Delivery in Spain and Germany. Cision
Affirm Holdings (AFRM) surges almost 65% after Q4 results
The stock price jumped more than 60% in the days following its report. The company beat fourth-quarter analyst estimates and guided growth in Q1 of 2024. In Q4, the company reported net revenue of $446 billion, up22% year-over-year, and gross merchandise volume of $5.5 billion, up 25% year-over-year. For Affirm Holding’s first quarter (ending Sept 30), the company has projected revenue between $430 million and $455 million, a notch above consensus estimate of $429.9 million. The Coin Republic
Affirm shares drop after company points to cost headwinds
Affirm Holdings Inc said funding costs will be a headwind for the BNPL company’s margins in the coming months. The financial technology company expects those increased expenses — brought on by rising interest rates — to eat into one of its key metrics: revenue less transaction costs. “We have been using warehouse facilities” and other funding mechanisms, Rob O’Hare, Affirm’s senior vice president of finance, said at a conference hosted by Barclays Plc. “That will drive up funding costs.” BNN Bloomberg
Zip partners with global payments leader Primer to accelerate US growth & market share
Zip announced a partnership with global payments provider Primer for international payments and commerce and to expand and optimize its payments stack as it accelerates its US market growth. Zip revealed record transaction volumes of $8.9b (up 7.0% YoY) and record group revenue of $693.2 million (up 16.1% YoY). In the US, Zip exited FY23 with positive cash EBITDA on a sustainable basis. Primer
Alif expands into the UAE with Alif Pay
The Asian FinTech Alif Pay will launch a series of market-leading financial services, leveraging next-generation technology to serve the bespoke needs of UAE residents. These include Send Now Pay Later (SNPL), a Payroll platform, travel prepaid program, Buy Now, Pay Later (BNPL), and Fly Now, Pay Later (FNPL) services. Fintech Global
Europe’s massive money laundering and corruption problem; crime gangs exploit fintech, vIBANs and DeFi, Europol warns
Europol chief Catherine De Bolle released a worrying report about a massive money laundering and corruption problem in Europe. Gangs also used new methods such as BNPL. The report said, “Buy now pay later financing, also known as point-of-sale installment loans, has grown recently, and criminals have been exploiting current weaknesses in the BNPL application process for theft. Since BNPL services do not conduct formal credit checks, offenders can often pass the algorithmic checks and use legitimate users’ accounts to illicitly order items.” AML Intelligence
Hokodo partners with Fuse
With offices in the UK, France, and Lithuania, Hokodo offers a scalable, all-in-one buy now pay later payment solution for B2B businesses. The new partnership with Fuse enhances business credit risk evaluation and the potential financial liability of small businesses with new tools. Fuse’s solutions give lenders a more accurate profile of a borrower’s financial vulnerability and affordability, allowing a more customized and appropriate credit product offering. The Paypers
Affirm extends bridge to regulators
Buy now, pay later provider Affirm has prepared for more regulatory scrutiny by taking care to explain its underwriting decisions, in contrast to the company’s rivals, CEO Max Levchin said during a conference appearance last week. “I think a fair amount of our competitors believe that they’ll either talk their way out of [regulatory attention] or hide their way out of it,” Levchin said at a Goldman Sachs investor conference in San Francisco. Payments Dive