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February 2, 2022

On the wires

Splitit Survey Shows Most Prefer a Buy Now, Pay Later Option on Existing Credit Cards Vs. a New Line of Credit

“New data revealed by Splitit (ASX:SPT,OTCQX: SPTTY ) indicates a closer correlation between credit cards and Buy Now, Pay Later (BNPL) as 60% of consumers would prefer to use a BNPL option with existing credit cards versus opening new lines of credit. The survey also showed most consumers prefer making monthly over bi-weekly payments and prefer longer terms, especially for larger purchases. Additionally, 64% of consumers anticipate their credit card spending to be the same or more than they did in 2021.”

January 26, 2022

On the web

Klarna Says Retailers Paying Less in Buy-Now, Pay-Later Frenzy


“The Consumer Financial Protection Bureau warned last month that it was probing the burgeoning industry, which it said charges merchants between 3% and 6% of a purchase price every time a consumer uses the options at checkout. As part of the inquiry, the agency ordered Klarna and many of its top rivals to submit information about industry practices and risks.    “As competitive forces pressure the merchant discount, lenders will need to find other sources of revenue to maintain growth and profitability,” the CFPB said last month. “The bureau would like to better understand practices around data collection, behavioral targeting, data monetization and the risks they may create for consumers.””

Spain’s Santander Launches Buy Now, Pay Later Platform Across Its Markets


“Spain’s Santander (SAN.MC) announced on Wednesday the launch Zinia, a new buy now, pay later platform it plans to roll out across its markets this year, starting in the Netherlands and Spain. The initiative is part of a wider strategy by European lenders aimed at boosting their revenues as they struggle with low interest rates while trying to fend off competition from technology firms. Buy now, pay later (BNPL) services have exploded in popularity in tandem with the acceleration in e-commerce during the pandemic.”

Buy Now, Pay Later Firm Klarna Launches Physical Card in the UK


“Swedish fintech firm Klarna is embedding its “buy now, pay later” service into a physical card in the U.K. The company on Wednesday announced the launch of Klarna Card, a Visa card that lets users delay payments on their purchases, both in-store as well as online.   The card is already available in Sweden and Germany, where it is now used by over 800,000 people, according to Klarna. This is the first time it has arrived in a country outside the European Union. The company has been expanding aggressively in the U.K. and America.”

On the wires

Affirm Launches SuperApp and Browser Extension to Bring Consumers More Smart Ways to Shop and Manage Their Finances

Affirm (NASDAQ: AFRM), the payment network that empowers consumers and helps merchants drive growth, today announced the launch of two significant additions to its product suite: the Affirm SuperApp and Chrome browser extension . Affirm’s new SuperApp delivers the best of Affirm’s shopping, payments, and financial services in one easy-to-use destination. The new Google Chrome browser extension allows consumers to use Affirm’s flexible and transparent payment solutions at virtually any retailer’s website, even if Affirm isn’t listed as being available at checkout.”

January 25, 2022

On the web

Buy Now, Pay Later Firms Zip, Sezzle Confirm Merger Talks


“Buy now, pay later (BNPL) firm Sezzle Inc is in talks to be acquired by larger Australian rival Zip Co Ltd, the companies said on Tuesday, sending shares of Sezzle soaring 23% during the session. The companies said in separate statements that talks were at an early stage and there was no certainty that a deal would materialise. U.S.-based Sezzle has a market capitalisation of almost A$425 million ($303.5 million), while Zip is valued at A$1.94 billion. Zip has been actively deal-making over the last year to build scale to compete with rivals including Klarna and Block Inc’s Afterpay.”

On the wires

Mastercard Installments BNPL Program Gives Consumers in the UAE and Saudi Arabia More Payment Choices Wherever They Shop | Middle East/Africa Hub

“Mastercard has expanded Mastercard Installments, its unique and innovative Buy Now, Pay Later (BNPL) program that delivers greater choice at checkout, both in-store and online, to consumers in the United Arab Emirates (UAE) and Saudi Arabia. The BNPL program will meet growing consumer demand for flexible, digital-first payment options, and support the region’s e-commerce ecosystem through a new program focused on providing consumers choice.”

January 18, 2022

On the web

Experian Clients Demand More Services Related to Buy-now-pay-later


“Experian (EXPN.L) sees growing demand for its services in the booming buy-now-pay-later (BNPL) sector as it adds more clients to the unit, the world’s largest credit data firm said on Friday after a strong third quarter. BNPL is a segment that is becoming more mainstream and Experian’s clients are demanding the company’s services to know whether an applicant is real or fraudulent, Chief Communication Officer Nadia Ridout-Jamieson told Reuters.”

On the wires

Verifone and Affirm Partner to Provide More Flexible Omnichannel Payment Offerings

“Verifone, a global FinTech leader and payment solution provider to the world’s best-known retail brands, and Affirm, the payment network that empowers consumers and helps merchants drive growth, today announce a new partnership that will make Affirm’s transparent and flexible payment options widely available on Verifone’s eCommerce and card-present payment solutions. The partnership will enable merchants to offer their customers the ability to pay at their own pace using Affirm online and in-store, reinforcing Verifone’s commitment to staying ahead of market trends and meeting merchant and consumer needs in the ever-evolving payment space.”

January 13, 2022

On the web

Railsbank Launches White Label BNPL Package for Retailers

Finextra Research

“Banking-as-a-service platform Railsbank has built a white label BNPL product that enables retailers to escape the clutches of shopping apps like Klarna and build their own branded buy now, pay later programmes. Available to retailers in the UK and Germany this year, the BNPL pakage enables retailers to provide their own branded instalment financing online and in-store.”

Zilch and Mastercard Announce Expanded Partnership to Launch Zilch BNPL Card Across Europe

Fintech Finance

“Zilch, the London-based unicorn Fintech announced today that it has expanded its partnership with Mastercard to bring Zilch’s popular over-the-top buy now, pay later (BNPL) digital card offering to Europe and enable deferred purchases across the EU.  Zilch’s digital card is currently available in the UK and has already reached over 1.7 million customers in less than 15 months – record time within the BNPLindustry. Today’s announcement will see Zilch accelerate its international growth across Europe. Enabling Mastercard payments Europe-wide supports Zilch’s mission to empower customers to shop anywhere, anytime using its unique BNPL solution with no hidden costs, interest or fees.”

January 12, 2022

On the web

Apexx Global Lands in the US

Finextra Research

“Apexx Global is bringing its payments orchestration and processing platform to the US as it bids to take advantage of the country’s fast-growing BNPL market. Founded in 2016, Apexx combines acquirers, gateways, shopping carts, alternative payments methods and now BNPL products into a single API connection, easing the efforts of merchants to offer a complete one-stop shop option for consumer payments.”

January 11, 2022

On the web

What Card Issuers Can Learn From CFPB’s Buy Now/Pay Later Inquiry

American Banker

“The Consumer Financial Protection Bureau’s recently announced inquiry into the operations of buy now/pay later fintechs raises many questions about how the rapidly growing industry’s policies affect overall consumer debt. But the CFPB’s probe could also end up spotlighting the very reasons consumers have flocked to simpler BNPL loans over the last few years, putting pressure on credit card issuers to modernize their own products.”

December 17, 2021

On the web

Repayment Problems Mount As BNPL Surges

Finextra Research

“New research by financial advice service OpenMoney finds almost three fifths (57%) of adults aged 18 to 50 have now used buy now, pay later schemes (BNPL), up from half (49%) last year. The largest rise in usage has been among 45 to 50-year-olds, where 16% growth in the last year makes it the age group most likely to choose the payment method, with 58% having done so compared to 56% of those aged 18 to 24 – contradicting the belief that it is largely a tool for youngsters.”

On the wires

Amazon Teams up With Barclays | Barclays

“From today, Amazon customers in the UK will have access to a new, flexible payment method – Instalments by Barclays, helping them to finance purchases of £100 or more on amazon.co.uk. The reusable credit account can be used on millions of products, including those from thousands of small and medium businesses selling on Amazon. With Instalments by Barclays, customers will have greater flexibility to pay for their purchases, with financing options available on terms between 3 – 48 months.”

December 16, 2021

On the web

Buy Now, Pay Later in Consumer Finance Watchdog’s Crosshairs


“The CFPB plans to ask the big players in the buy now, pay later industry for information about consumer protection concerns that have arisen about the burgeoning product. The Consumer Financial Protection Bureau is expected to send letters to Affirm, Afterpay and Klarna and other companies that dominate the market, according to multiple sources with knowledge of the letters. The letters are expected to demand information similar to ones the bureau sent to large tech players like Apple Inc., Amazon Inc., and and Google in October. The CFPB didn’t immediately respond to a request for comment. Buy now, pay later …”

December 14, 2021

On the web

Bumper Raises $12m to Expand Its Car Repair Buy Now, Pay Later Offering – AltFi


“UK-based buy now, pay later provider, Bumper, raised $12m in Series A funding that will help the company expand its car repair financing platform across Europe, the company announced on Tuesday. The latest round, which brought total funding to $17.5m, was led by Silicon Valley-based Autotech Ventures, with participation from Jaguar Land Rover’s fund InMotion Ventures, Porsche Ventures, and a group of prominent angel investors, the press release said.”

On the wires

Klarna Partners With GoCardless to Accelerate Expansion in the US

“Klarna, a leading global retail bank, payments and shopping service, today announced that it has chosen GoCardless, a global leader in account-to-account payments, to offer bank debit payments to its over 21 million US customers. Klarna will use GoCardless for its popular Pay in 4 offering and its financing solution, creating a more convenient shopping experience for consumers. Klarna users can pay in four interest-free installments when choosing Pay in 4, as well as across monthly payments with Klarna financing. These alternatives for purchases reduce the risk of failed or late payments and remove the hassle of entering and updating card details.”

December 10, 2021

On the wires

Resolve Secures $25M As Market for Embedded B2B Buy Now, Pay Later Solutions Catches Fire

Resolve announced today that it has raised an additional $25 million in strategic equity funding to meet rising demand from business-to-business (B2B) companies seeking to simplify their net terms payments and embed B2B buy now, pay later (BNPL) solutions into their payment workflows. Launched as a spinout from Affirm in 2019, Resolve previously announced a combined $60 million asset and equity financing in early 2021.”

December 9, 2021

On the web

Klarna Launches Browser Extension With Payments and Coupons


“Fintech startup Klarna is launching a desktop browser extension that provides many of the features that you can find in the company’s mobile app — but on your computer. In addition to the ability to manage your Klarna payments, the extension automatically applies coupon codes when you’re on a checkout page. Klarna has acquired Piggy for the automatic couponing feature. Piggy originally built a browser extension that surfaces coupons and cashback offers when you purchase something — FinanceFWD first reported the acquisition and Klarna isn’t disclosing the terms of the deal.”

On the wires

Affirm Launches Cash Back Rewards With New Pay Now Feature in the Affirm App

Affirm , the payment network that empowers consumers and helps merchants drive growth, today announced a set of updates to the Affirm App that bring consumers increased flexibility and purchasing power. Previously, consumers could use the Affirm App to shop online or in-store at virtually any retailer and pay over time — biweekly or monthly. With these updates to the Affirm App, consumers now also have the option to pay in full upfront at hundreds of merchants while earning rewards in the process, thanks to Affirm’s new Cash Back Rewards program.”

December 7, 2021

On the web

UK’s Buy Now, Pay Later Fintech Butter Introduces BNPL Card

Crowdfund Insider

“UK-headquartered Buy Now, Pay Later (BNPL) Fintech Butter is planning to compete with and potentially replace traditional credit cards with the introduction of its own BNPL card. Although 65% of UK consumers carry credit cards, the number being issued has declined by around 3% during the past year, meanwhile, the value of consumer purchased products on credit has fallen. And the fast-evolving BNPL sector – although still a lot smaller than conventional credit cards – has experienced steady growth.”

On the wires

Citizens Extends Point-of-Sale Financing Offer to Microsoft Store

Citizens will provide broad point-of-sale financing for Microsoft Store as part of a newly expanded relationship with the global technology leader. Customers now have access to no-interest financing across all Microsoft hardware, accessories and subscription services purchased through microsoft.com in the U.S. through the bank’s innovative Citizens Pay platform, offering an alternative way to finance products such as the new Surface Pro 8, Surface Duo 2, Windows 11 PCs, and Xbox consoles, games, and subscriptions.”

December 6, 2021

On the web

On the wires

Rakuten and Afterpay Partner to Let Shoppers Stack Cash Back Rewards With Buy Now, Pay Later

Afterpay (ASX:APT), the leader in “Buy Now, Pay Later” payments, and Rakuten , the leading shopping rewards and cash back program, are joining forces to help consumers shop smart and spend wisely. With this partnership, retailers can combine the incentive of cash back with the flexibility and convenience of Buy Now, Pay Later to help shoppers ease the financial stress on their wallets this holiday season.”

December 3, 2021

On the web

Buy Now Pay Later Customers Unaware of Pitfalls, Warn Barclays

Yahoo Finance

“New research has revealed the pitfalls of unregulated Buy Now Pay Later (BNPL) agreements for Christmas shoppers in Britain, with two in five users in unclear of what it is they are signing up to. The data, commissioned by Barclays, found that 36% of BNPL customers do not fully understand the consequences of missing repayments, while 52% are unaware that unregulated BNPL providers do not have to carry out robust affordability checks.”

December 2, 2021

On the web

American Express Taps Opy for Its First US Third-party BNPL Offering


“Credit card companies are seeking to push further into the “buy now, pay later” (BNPL) market. American Express (Amex) announced today that it plans to partner with Opy, the U.S. subsidiary of Australian fintech Openpay, to allow all of its U.S. cardmembers to pay in installments for qualifying purchases in the healthcare and automotive segments. The partnership is American Express’s first third-party BNPL agreement in the United States, a spokesperson for the company told TechCrunch in an email. Amex will help onboard merchants in these sectors onto its platform.”

December 1, 2021

On the web

Microsoft Edge Buy Now Pay Later Scheme Met With Criticism

BBC News

“Microsoft is under fire from angry users after announcing plans for a built-in “buy now pay later” function in its Edge web browser. Such schemes let buyers divide payments into smaller chunks over time – but have been criticised for their risk of users getting into debt. Microsoft has added one provider to the checkout page of shopping sites as a default payment option. But users have accused Microsoft of greed and a “cashgrab” mentality.”

On the wires

PayPal Powers Pay Later Offerings for Wix Merchants This Holiday Season

“PayPal Holdings Inc. (NASDAQ: PYPL ) today announced that Wix (Nasdaq: WIX ) merchants can offer PayPal Pay in 4* and PayPal Credit** through a dedicated Pay Later checkout button, as well as present Pay in 4 messaging earlier in the shopping journey. With many businesses expressing optimism this holiday season, PayPal Pay Later solutions provide Wix eCommerce merchants in the U.S. with another way to help maximize this all-important time of year.”

November 30, 2021

On the web

With Delinquencies Rising, Experts Advise Flexible Repayment Plans for BNPL Users

Digital Transactions

“With defaults on buy now, pay later loans on the rise, BNPL providers need to be cognizant that creating a flexible repayment plan can not only help improve recovery rates, but help retain delinquent customers by providing a better customer experience during the collection phase, says a study from digital debt-collection agency TrueAccord.  The latter is important, as BNPL providers are slugging it out to attract and retain new customers. Over the past 12 months, the typical BNPL customer used up to six different BNPL providers .”

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