YouGov research shows US BNPL use has doubled since 2021. BNPL providers are introducing payment cards to make installment payments easier for consumers. Expect more competitors to join Affirm, Klarna and Afterpay with cards. Affirm booked a deal for BNPL travel with Booking.com and related brands KAYAK, Agoda and Priceline. No dough for a van Gogh? Arternal and Affirm partner for art collector installments.
German BNPL growth in 2022 surpassed 30%, according to credit agency Schufa. Klarna CEO Sebastian Siemiatkowski and Jifiti CEO Yaacov Martin talk about how their companies are navigating the uncertain waters of today’s BNPL industry. India’s BNPL industry should grow with bank installment UPI payment availability.
Take a tour of our BNPL reports to stay on top of new industry developments around the world.
BNPL usage in US doubled since 2021
A YouGov study shows 8% of US adults have used BNPL credit financing for online purchases in the past year, a 200% increase since 2021. 26% have purchased jewelry online (vs 12% credit card users), 25% have purchased appliances online (vs 11%), and 23% have purchased mattresses online (vs 16%). Millennials represented the largest growth segment – increasing by 91%), while online credit card usage among US millennials dropped by 4% during the same period. YouGov
Baby boomers prefer credit card installment plans 2:1 over BNPL
There’s a clear preference for credit card installment plans versus buy now pay later preferences by baby boomers and seniors. Of these surveyed consumers, 20% had used credit card installment plans heavily: five times or more over the three months before being surveyed, per “Tracking the Digital Payments Takeover,” a PYMNTS and AWS collaboration. PYMNTS
Will the latest version of BNPL fly in the high-end art world?
Want to buy a Van Gogh but don’t have the dough? Thwarted collectors have a new place to turn: Tech company Affirm announced that it is launching a program to help people buy fine art in installments. Arternal CEO Sean Green said Interest rates for purchases are zero percent for three and six-month payment plans, with other interest-bearing options available to provide collectors with more flexible payment options. Artnet
BNPL is growing strongly in Germany
Schufa has reported a 30% increase in BNPL usage in 2022, and the credit agency warns about the risks associated with deferred payments. Schufa reported 9.1 million BNPL contracts in 2022, with 97.9% repaid. Consumers typically borrowed an average of 356 euros, down from 398 euros the previous year. Small loans under €1,000 as of Dec 31, 2022, rose significantly among individuals aged 20 to 39, with year-over-year growth exceeding 50%. E-commerce News
BNPL fintechs pin hopes on plastic cards
US consumers juggle a growing array of payment options, and BNPL fintechs are adding another choice to the mix – BNPL-branded cards to use in stores. San Francisco-based BNPL lender Affirm rolled out the Affirm Card, a physical version of its 11-year-old online instant-financing service, months after its Sweden-based BNPL rival Klarna launched its own plastic Klarna Visa. Block’s BNPL unit Afterpay also has a virtual Visa card that consumers can use to pay in stores. American Banker
Affirm partners with Booking.com
Affirm will be available at checkout across several Booking Holdings travel brands while expanding on existing collaborations with KAYAK, Agoda, and Priceline at the same time. By selecting Affirm at checkout, Booking.com clients have the option to choose a personalized payment plan designed to work best for their budget, with the option to pay in either monthly or bi-weekly payments with the assurance they will not pay more than they agreed at the moment of the checkout. The Paypers
Klarna CEO talks state of consumers in buy now pay later landscape
The buy now, pay later industry continues to take hits due to elevated interest rates and the resumption of student loan payments. Klarna CEO Sebastian Siemiatkowski joins Yahoo Finance Live to discuss the company’s profitability while growing its consumer base and keeping its customers’ best interests at heart. Semiatkowski said, “The average outstanding balances in the US are about $120 to $250 compared to $5,000 for a credit card, which means that we have a very healthy consumer that is using credit very responsibly.” Yahoo Finance
The Fintech Coffee Break – Yaacov Martin, CEO, Jifiti
Conditions for lending have become increasingly challenging as 2023 has rolled out. An uncertain economy and rate hikes have made lenders uneasy. BNPL, a sector facing increased scrutiny and regulation, has been caught in the middle. I spoke to Yaacov about the macroeconomic effect on lending and how Jifiti’s partnerships with banks have affected its impact on the company and the customers they serve. Fintech Nexus
Banks can offer a BNPL experience to Indian customers via UPI
As the unified payments interface (UPI) becomes the country’s de facto digital payments mode, the Reserve Bank of India intends to open up more credit instruments on the platform. On Monday, the regulator enabled credit lines to be opened by banks on UPI’s rails. In doing so, it has enabled lenders the chance to build ‘buy now pay later’ type experiences on UPI. A senior banker told ET that while UPI solves the distribution challenge, the collections problem will continue. The Economic Times