According to a New York Fed report, BNPL users may be vulnerable and “financially fragile.” In September, Klarna kept its number one spot on the PYMNTS ranking of BNPL providers. A research and markets report also said Klarna was rated best by 30% of US consumers. Affirm is exploring a subscription service with a guaranteed 0% APR on BNPL loans up to $2,500 and an upgrade to features for its savings account.
Olamide Majekodunmi, Founder of All Things Money, said BNPL services said the rapid growth of installment loans is concerning and may be a debt trap for users. The UK Labour Party is pushing BNPL regulations as the Treasury Department dances around the issue. Storepay is not only Mongolia’s first BNPL provider, it has its own crypto coin enabling more inclusion, according to its founder and CEO.
BNPL users ‘financially fragile,’ NY Fed says
Consumers using BNPL have lower credit scores, have been delinquent on a loan, or have been rejected for a credit application over the past year, New York Fed researchers said. “The fact that a disproportionate share of BNPL users are already financially fragile raises questions about the resilience of BNPL lending and its performance following an adverse economic shock,” New York Fed researchers wrote. PaymentsDive
Klarna retains top spot in BNPL app provider rankings
PYMNTS research showed no change in the monthly rankings of the top five BNPL service providers, including Klarna with a score of 93, followed by Affirm (88), PayPal (82), Afterpay (81) and Zip (64). The remaining top nine included Sezzle (55), LayBuy (45), Humm (32), and ViaBill (27). PYMNTS
US BNPL adoption slows: Klarna dominates despite market headwinds
US BNPL service use slowed in 2022, and although it will double by 2026, The number of BNPL users is also projected to increase, but the growth rate of new users is expected to decline. Klarna was ranked the top BNPL provider by 30% of US consumers, followed by Afterpay and Affirm. Orders for groceries and apparel experienced growth, reflecting a shift towards financing smaller purchases. ResearchandMarkets
Affirm explores subscription services to diversify revenue sources
Fintech company Affirm is reportedly exploring introducing a subscription service called Affirm Plus. The potential service aims to offer upgrades for both its buy now pay later plan users and savings account holders. According to the report, one of the key features of Affirm Plus would be the guarantee of a 0% APR on installment loans up to $2,500. Affirm’s payment offerings come with APRs ranging from 0% to 36%. PYMNTS
Buy Now Pay Later: Shopping bliss or financial abyss?
Digital payment options like PayPal’s Pay in 4, Klarna, Afterpay, QuadPay and Affirm are growing increasingly popular in online shops worldwide. Are BNPL products a lower-risk, fairer, and more sustainable way to access credit, or are they a debt trap? According to Olamide Majekodunmi, Founder of All Things Money, BNPL services snowballing makes for scary reading as it shows that the level of personal debt amongst their users will most likely be increasing too. Business Leader
Labour reportedly pledges action on BNPL credit
The Labour Party is reportedly set to make regulating buy now pay later credit a pledge in its next election manifesto. That came off the back of reports from Sky News in July that the Treasury was “leaning towards” kicking prospective BNPL rules – which would require lenders to credit check prospective borrowers and give users credit card-style protections – into the “long grass”, something the department has denied. It has, however, said any regulation must be “proportionate”. Credit Strategy
Meet Khangal Nergui, Founder and CEO of BNPL provider Storepay
Storepay is a fintech company that offers BNPL solutions and crypto capabilities. It is the first-ever Mongolian BNPL provider, allowing users to split payments for everyday necessities, products, and services, including petrol, travel tickets, cars, education fees, hospital bills, and real estate. It also offers a native token, the Storepay Coin (SPCFIN), which can be used to purchase food and other goods, enabling greater accessibility and inclusion. TechRound