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January 17, 2023

On the web

PayPal’s Evolving Strategy in a Crowded BNPL Market

Tearsheet

Buy Now, Pay Later (BNPL) gained ground in recent years as an alternative form of credit for online retail purchases. As more and more big players continue to enter the BNPL industry, competition in the space is intensifying. PayPal entered the sector by launching its first BNPL offering – ‘Pay in 4’ – in 2020, and expanded its suite of products by rolling out another BNPL product, ‘Pay Monthly’, in 2022.

Zilch Could Now Impact Your Credit Score, as Lending Data is Shared with Bureaus

AltFi

Direct-to-consumer buy now, pay later lender Zilch has started reporting its 3 million customers’ borrowing data to UK credit bureaus, in a way that could impact credit scores. Until now Zilch has had partnerships with individual credit bureaus like Experian, but has only used this data as part of its affordability assessments to perform “soft” credit checks on borrowers and to add data to credit files in a way that didn't impact credit scores. In a statement yesterday, the lender explained that it will now be integrating with all the credit bureaus in a way that could influence credit scores.

January 16, 2023

On the web

Zilch to Report BNPL Purchases to Credit Agencies, Pre-Empting Regulation

UKTN

UK fintech company Zilch has said that using its buy now pay later (BNPL) product will affect customer credit scores, in a move that pre-empts stricter government regulation of the sector. As revealed by The Telegraph, the BNPL provider – a purchase method that splits repayments into instalments – will report customer transactions to credit reference agencies (CRAs).

April 11, 2022

On the web

State Attorneys General Urge CFPB Oversight on “Buy Now, Pay Later” Companies | JD Supra

JD Supra

“On March 25, the Illinois State Attorney General Kwame Raoul, along with 18 other state attorneys general (state AGs), [1] provided comments to the Consumer Financial Protection Bureau (CFPB) related to the CFPB’s inquiry into companies that offer consumers the opportunity to divide the cost of their purchases into multiple installments, also referred to as “buy now, pay later” (BNPL) products. The 19 state AGs provide their support and offer seven recommendations in response to the CFPB’s inquiry in their comments.”

April 8, 2022

On the wires

U.S. Bank Expands and Enhances U.S. Bank ExtendPay™

“U.S. Bank, an industry leader in payment services, has enhanced its ExtendPay ™ offering, which provides U.S. Bank consumer and business cardmembers with the ability to buy what they want now and pay for it later, providing them with added flexibility and control over their cash flow. ExtendPay is a new payment option that allows customers to divide eligible purchases into affordable, fixed monthly payments with no added interest – just a fixed monthly fee.”

April 7, 2022

On the wires

Zilch Continues to Lead Responsible Lending in the Payments and BNPL Space

Zilch , the London, head-quartered fintech Unicorn, today announces it has taken another major step forward in innovating its technology to measure affordability through its latest partnership with Experian, the global information services company to begin reciprocal reporting of Buy Now Pay Later credit information. Zilch continues to pioneer the space by making use of a unique blend of CRA data, Open Banking data and its own proprietary behavioural data to make active consumer lending decisions. This creates a 360 degree view of a customer’s affordability at any given time.”

April 5, 2022

On the wires

Visa Installments Solution Eyes Expansion With Air Canada

“As consumer interest in ‘Buy Now, Pay Later’ (BNPL) continues to grow, Visa announced today its intention to collaborate with Air Canada, the flag carrier and Canada’s largest airline, to facilitate the offering of Visa Installment Solution to eligible credit cardholders, giving Canadian travelers more choice and flexibility over how they pay for their airline purchases. With this collaboration, Air Canada would be among the first airlines globally to participate in Visa Installments Solution.”

March 31, 2022

On the web

Exclusive: Klarna Spins Open Banking API Strategy With Dedicated Unit – AltFi

AltFi

Klarna is best known for riding the crest of ‘buy now, pay later’ wave but its booming open banking business is its new move. In the past year, the company has stealthily created a dedicated unit devoted to open banking, including doubling its bank connectivity in the past year from 6,000 to 15,000 banks making us the largest bank aggregator in the world.”

March 16, 2022

On the web

EBay and Klarna Partner to Bring Flexible Payment Options to Germany – AltFi

AltFi

“eBay is partnering with Klarna to bring new flexible payment options to German shoppers.   The two new Klarna payment options being added to eBay.de will supplement the existing payment methods, which include Klarna’s Pay Now service (Sofortüberweisung).  Customers will now also be able to access Pay Later (Invoice) and Financing, giving them several options to choose from on every purchase, whether that’s paying immediately or at a later time.”

On the wires

Mastercard Drives Scale of Buy Now, Pay Later With Raft of New Partners

“Mastercard today announced a growing list of leading partners, including BNPL specialists and globally recognized brands, further expanding Mastercard Installments, the unique BNPL program that delivers greater choice at checkout, both in-store and online.Amount, Bass Pro Shops and Cabela’s, Deserve, H&R Block, i2c, Lithic, Saks Fifth Avenue, Sutton Bank and Walgreens join the wide array of partners already working with Mastercard on the BNPL program. They are the latest brands to embrace the benefits of adopting Mastercard Installments’ innovative open loop model.”

March 10, 2022

On the web

New BNPL Study Raises Concern About ‘Debt Spiral’

Payments Dive

“Nearly 20 percent of U.K. credit cards were used last year to make buy now-pay later payments, a “warning flag” for regulators concerned about consumers taking on more debt than they can afford, said new research from three British economists. The working paper , published online last month though not yet in an academic journal, examined the transactions of one million credit cards held by U.K. consumers and discovered 19.5% of active U.K. credit cards were used for charges covering buy now-pay later (BNPL) transactions last year.”

On the wires

March 1, 2022

On the web

PollenPay Creates a Buzz in BNPL Revolution

Fintech Finance

PollenPay, the Manchester-based ‘Buy Now, Pay Later’ (BNPL) company has officially launched in the UK. The company’s mobile-based application is now available as a free download for all customers aged 18 or above, via Apple ’s App Store. PollenPay’s new mobile application will give its customers more flexibility when making payments.”

February 28, 2022

On the web

A Deal With Developer Brookfield Catapults Klarna Into U.S. Shopping Centers

Digital Transactions

“The Sweden-based buy now, pay later provider Klarna AB on Friday announced a major move in its increasingly crucial U.S. market with the news that it will provide its payment service to Brookfield Properties, a real-estate developer with more than 150 shopping centers. The agreement, which makes Klarna the exclusive provider for New York City-based Brookfield, also further extends BNPL into in-person shopping as U.S. consumers return to stores.”

Payments Company Klarna’s Losses Grow As Expansion Continues

Reuters

“Swedish payments company Klarna on Monday reported that losses widened sharply in 2021 as it has “massively accelerated” global expansion with the addition of 10 new markets since the start of 2020. Operating losses rose to 6.58 billion Swedish crowns ($688.85 million), from 1.63 billion crowns in 2020. The company, which offers a buy now, pay later service, said the United States continued to be its fastest-growing key market by volume.”

February 25, 2022

On the wires

TransUnion to Maximize Financial Inclusion Opportunities for the Nearly 100 Million Consumers Using BNPL Loans

“To help promote financial inclusion opportunities for this growing population, and allow the financial community to accurately capture credit behaviors of consumers using such loans and other point-of-sale installment products, TransUnion (NYSE: TRU) introduced today its new Point-of-Sale suite of solutions . Inclusion of point-of-sale loans on the consumer credit file is likely to benefit the populations most in need of new tools to build and improve their credit.”

February 24, 2022

On the web

Scalapay Joins BNPL Unicorn Club

Finextra Research

“Italy’s Scalapay has become the latest BNPL unicorn on the back of a $497 million Series B investment from Tencent and Willoughby Capital, with participation from Tiger Global, Gangwal, Moore Capital, Deimos, and Fasanara Capital. Scalapay’s BNPL offerings include three options for customers – Pay in 3, Pay in 4, or settle up after 14 days.”

February 22, 2022

On the web

Klarna Rolls Out ‘Pay Now’ and Rewards Programs to New Markets

Bloomberg

Klarna Bank AB is adding the option for customers to pay immediately at checkout in nine new markets while expanding its rewards program, as it targets becoming a one-stop lender for consumers. The company grew to a $46 billion valuation and 100 million users on the back of allowing customers to pay for purchases in installments, fueling a rise in buy-now-pay-later startups. After launching ‘Pay Now’ in the U.S. and U.K. last year, Klarna is now rolling out the service to Australia, Ireland, France, Italy, Spain, Portugal, Poland, Canada and New Zealand, according to a statement.”

On the wires

Sezzle Partners With WellNow Bringing Buy Now, Pay Later to Urgent Care

“Sezzle Inc. (ASX: SZL) (Sezzle or Company) // – Sezzle , a leading mission-driven Buy Now, Pay Later solution, announces the accession of its financing product into healthcare. In partnership with WellNow Urgent Care, one of the country’s top urgent care providers, Sezzle’s interest-free solution is now available at over one hundred WellNow clinics across New York, Ohio, Illinois, Michigan, and Indiana.”

February 18, 2022

On the web

February 17, 2022

On the web

On the wires

February 15, 2022

On the wires

ACI Worldwide Launches Innovative Global BNPL Solution With Access to 70+ BNPL Lenders Via Single Integration | ACI Worldwide, Inc.

ACI Worldwide (NASDAQ: ACIW), a leading global provider of real-time digital payment software , today announced ACI PayAfter ™, a new solution that enables merchants globally to provide their customers with a choice of more than 70 BNPL options through a single integration. The innovative user interface enhances acceptance rates and serves a broader base of customers traditionally overlooked, boosting merchant sales worldwide. For merchants, ACI PayAfter offers one application and a single contract that reduces the complexity and cost of integration, as well as faster speed to market, and actionable customer intelligence.”

February 14, 2022

On the web

Barclays Calls for Tougher BNPL Regulation

Latest Retail Technology News From Across The Globe - Charged

“Barclays has called for the buy now pay later (BNPL) sector to be properly regulated and subject to the same legislation as the wider credit market. The bank believes that “a consistent and fit-for-purpose regulatory framework is crucial to protecting consumers from taking on unmanageable debt”. The government recently announced that BNPL would be regulated by the Financial Conduct Authority (FCA), a move likely to take effect later this year, In response to concerns about consumer debt. However, it has not confirmed what this regulation will include.”

On the wires

FCA Secures Contract Changes for Buy-now-pay-later Customers

“The Woolard Review into change and innovation in the unsecured credit market found the use of Buy-Now Pay-Later (BNPL) products nearly quadrupled in 2020 to £2.7 billion. The Government plans to change the law to bring some of the current forms of unregulated buy-now-pay-later products into FCA regulation.  Even though the type of buy-now-pay-later agreements offered by these firms are not yet regulated, the FCA was able to use the Consumer Rights Act to assess the fairness and transparency of the terms.”

February 10, 2022

On the web

BNPL Payment Startup Alma Raises Another $130 Million Round

TechCrunch

“French startup Alma is trying to build a new “buy now, pay later” giant in Europe. The company has closed a $130 million Series C round (€115 million). It has also raised $109 million (€95 million) in debt financing… The company has partnered with 6,000 merchants so that they offer more flexibility for expensive purchases. The main payment product is the option to pay in 2, 3 or 4 installments.   But the company also offers different plans. For instance, Alma offers 10-month or 12-month plans. Those options are particularly popular with some specific purchases, such as consumer electronics devices or furniture.”

Europe Fintech Giant Klarna Considers Raising Fresh Funds

Bloomberg

“Swedish payments firm Klarna Bank AB is weighing plans to raise new money in a funding round that would cement its status as Europe’s most valuable startup, people familiar with the matter said. The Stockholm-based company is likely to attract sovereign wealth and pension funds as new investors, the people said, asking not to be identified discussing confidential information. Klarna could potentially fetch a valuation of roughly $50 billion to $60 billion based on preliminary estimates, though it hasn’t finalized a precise target, the people said.”

On the wires

February 4, 2022

On the web

‘Trouble’ Brewing for ‘Desperate’ Buy Now, Pay Later Sector

news

““The reality is the BNPL provider’s bad debts are astronomical, none of them have made a profit, none of them have paid a divided and share prices are down 70 to 80 to even 90 per cent in some cases.” Afterpay reported a $156.3 million loss for the last financial year, which was up by almost 700 per cent compared to the previous year’s loss. Rival BNPL service Zip also reported a $652 million loss, a whopping 3000 per cent increase on last year, where it had announced a $20 million deficit.”