“Buy Now, Pay Later installment plans have become popular among consumers seeking to spread out the cost of big-ticket purchases. But now, rising prices have some cash-strapped shoppers reaching for these alternative payment methods for everyday purchases, such as their daily coffee, gas station fill-up or grocery run, as well. That’s a concern for economists and consumer advocates, who say the surge in the use of these services, coupled with a lack of transparency and little regulatory oversight, leaves them wondering just how much debt Americans are actually getting into.”

“Zilch, a London-based Buy Now, Pay Later (BNPL) platform, announced on Thursday that it has secured an additional $50M (approximately €48M) in an Series C extended round of funding… The UK company will use the funds to accelerate business growth, particularly in the US, where it has opened a new office in Miami and has 150,000 pre-registered customers.  The funding announcement follows the recent news that BNPL firms are set to face regulation in the UK as HM Treasury sets out a framework for the Financial Conduct Authority (FCA) to review the sector. Zilch was an integral part of the Sandbox programme from inception, during which it worked closely with the Financial Conduct Authority (FCA) and was one of the UK’s first BNPL providers to be granted an FCA licence to perform regulated Consumer Credit activities.”

“Openpay Group, an Australian buy-now-pay-later (BNPL)firm, has halted operations in the United States four months after describing it as its main growth market, the latest casualty among consumer finance startups as rising interest rates bite. Investment in an “Americanised” platform caused Openpay’s losses to widen 65% in the first half and the company had wanted an investor to help fund its U.S. expansion. But current economic and market conditions and “the likely ongoing capital investment required,” has forced Openpay to stop extending loans and cut most of its U.S. unit’s staff, it said in a statement. The BNPL business model emerged out of a very low interest rate environment which enabled the industry to raise funds at relatively low cost and offer point-of-sale loans to customers on online shopping websites.”

Credova, a leading Buy Now Pay Later (BNPL) platform announced a new partnership with the American Sportfishing Association (ASA). The partnership allows manufacturers and retail members of the ASA an opportunity to gain access to Credova’s BNPL option built for outdoor recreation. Credova features a popular four payments, no interest product, as well as long duration installment loans.

“Some shoppers say “buy now, pay later” may not be all it’s cracked up to be. After experiencing explosive growth during the pandemic — spending on BNPL in the U.S. soared 230% since the start of 2020 — the hype around installment buying is fading as costs for everyday items rise and consumers dial back on discretionary purchases.   Although 45 million shoppers embraced installment purchases last year alone, some have a case of buyer’s remorse, especially if they’ve shelled out more than they can afford or are struggling to keep track of multiple loans. Nearly 70% of buy now, pay later users admit to spending more than they would if they had to pay for everything upfront, according to a survey from LendingTree. As a result, 23% of consumers said they’ve regretted financing a purchase this way, LendingTree found.”