Afterpay cut AMEX as a payment option for its BNPL customers beginning Oct 2, while AMEX responded by encouraging customers to use its Plan It installments. New research shows rewards boost BNPL use, and 28% of consumers have now tried the service. JD Power reports that BNPL is among the most popular consumer payment methods. PayPal’s latest financials show that 32 million customers have used its BNPL payment option, available at more than three million merchants.
UK research shows 20% of consumers used BNPL to purchase groceries and other household essentials, raising calls for regulation. An Indonesian analyst raised warnings about fast-growing BNPL use in the country among young consumers. Qatar Central Bank is taking applications for BNPL service providers in the oil-rich nation. Solaris research shows consumers prefer embedded payments, including BNPL and digital wallets.
AMEX and Afterpay part ways
In a move almost sure to rile rewards points junkies, Afterpay is about to scrap American Express as a payment method for its buy now pay later customers. Afterpay last week began notifying customers by email that from Oct 2, it will no longer accept AMEX card payments to settle fortnightly installment payments on BNPL accounts. AMEX urged cardholders to use its proprietary buy now pay later service, Plan It. Banking Day
Boosting rewards and limits can grow BNPL usage
Research looks at what features they expect from deferred payment plans and insights into how BNPL can meet these expectations and reach the usage rates of credit card installment plans. Key insights: 28% have used BNPL; 75% are extremely satisfied with BNPL options; BNPL lags credit card use in most categories but is used widely for many products. PYMNTS
Debit cards reign amid proliferation of POS payment options
According to JD Power’s US Consumer POS Payment Program report, consumers have used “no fewer than four different payment methods, including debit cards, cash, credit cards, digital wallets and BNPL.” Debit cards at 78% are followed by cash (74%); credit cards (66%); digital wallets (36%); gift cards (33%); BNPL (28%); merchant apps (20%); checks (19%); prepaid cards (14%); pay by bank (7%); and cryptocurrency (3%). JD Power
PayPal BNPL grabs $6B of payment volumes, up 70%
PayPal’s latest earnings results show users transacting more often, and buy now, pay later is increasingly embraced at checkout. The company ended the quarter with 433 million active accounts, up 1% year over year, including 35 million merchant accounts. CEO Dan Schulman said more than 32 million consumers have used the option since inception, and available at roughly three million merchants. PYMNTS
UK regulation urged as new research exposes concerns in BNPL trends
Recent research by Behavioural Insights and Money Pensions Service (MaPS) shows one in five BNPL users, almost two million individuals, now rely on BNPL to cover essential expenditures. Groceries (11%), toiletries (8%), household bills (5%), and fuel (4%) make up the essentials now increasingly being financed through buy now pay later. Over half (55%) have pending payments, with 33% juggling multiple outstanding bills. The Fintech Times
Pay later or pay never? Bad debt may damage loan growth, analyst warns
Credit rating agency Pefindo stated that outstanding pay-later debt amounted to Rp 25.16 trillion (US$1.65 billion) at the end of June, up 29.8% from mid-2022. An analyst warned that the trend may slow down loan growth in the medium or long term. Other experts urged BNPL service providers to be more selective about offering the option to prevent excessive defaults. Jakarta Post
QCB receives applications for BNPL service providers
Qatar Central Bank (QCB) said it has officially opened the application process to obtain a license to provide ‘Buy Now Pay Later’ (BNPL) services, noting applications will be accepted until Nov 3, 2023. QCB explained it aims to regulate the BN PL service providers in the country in a way that achieves an appropriate regulatory framework for emerging financial technology companies to develop and improve smart solutions for the service. The Peninsula
Solaris: Accessibility driving embedded finance use
Of those using embedded financial services, it’s the digital offerings that take precedence. Some 36% of respondents say they use digital wallets instead of credit cards (34%) and online bank accounts (28%) when purchasing. Debit cards are the only non-digital option in use that accounts for BNPL offers, which is the key reason why they would favor embedded financial services over more traditional offerings. FinTech