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The buy now, pay later (BNPL) phenomenon continues to be a major force in e-commerce payments. Now, BNPL providers are releasing physical card products to encourage in-store spending. This Javelin Strategy & Research note looks at developments in the market, details how traditional FIs are responding, and offers recommendations for navigating the road ahead. Read the report: https://lnkd.in/gVNHBDPT #credit #BNPL

Did you know? 🤓💡 Nearly 1/3 of consumers prefer paying via BNPL instead of conventional credit cards. But where does this development come from? 🔍 Even though BNPL is way younger than any credit card, its popularity is undeniable. Making payments without paying instantly has been a go-to solution for many people in recent years, mainly driven by inflationary influences. The main reasons for this development are likely to be the high flexibility that BNPL brings, but above all the fact that many BNPL providers offer interest-free installment payments 🙌 This means that BNPL often offers a cheaper and easier way to make installment payments over a longer period of time compared to conventional credit cards. But of course, #BNPL is not completely risk-free. You can read more about the advantages and disadvantages of BNPL in our latest blog article 📖 #buynowpaylater #paymentorchestration #payments #ixopay

Buy now, pay later services are increasingly popular, but should you be using them? Nearly 2 in 5 Americans have used at least one buy now, pay later service whether it was through PayPal, Affirm, Afterpay, Klarna, or another installment lender. However, a new Bankrate survey found that 56% of BNPL users say that they have encountered at least one issue while utilizing these services. The most common problems include: - Spending more than they should have (29%) - Missing a payment (18%) - Facing difficulties with returning a purchase/ obtaining a refund (18%) Younger generations are more likely to have utilized buy now, pay later services and are more likely to have experienced issues. Bankrate Senior Industry Analyst Ted Rossman highlights while services like BNPL can be helpful, it is important to remain mindful of how much you’re spending as those payments can still add up quickly. https://lnkd.in/eyXsbsv9

From Javelin Strategy & Research colleague Ben Danner comes this report on buy now, pay later solutions from the credit side of the aisle: The buy now, pay later (BNPL) phenomenon continues to be a major force in e-commerce payments. Now, BNPL providers are releasing physical card products to encourage in-store spending. This Javelin Strategy & Research note looks at developments in the market, details how traditional FIs are responding, and offers recommendations for navigating the road ahead. https://lnkd.in/g5EDt5XE #bnpl #credit #creditcards

Buy Now Pay Later Payments Expected to Grow by 22.4% in Africa And The Middle East Buy Now Pay Later (BNPL) Payments is expected to grow by 22.4% in Africa and The Middle East on an annual basis to reach US$15.5 billion in 2024. According to research, the comprehensive landscape of the Buy Now Pay Later (BNPL) industry in Africa and the Middle East is expected to achieve significant growth in the upcoming years. The payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 16.1% during 2024-2029. Read more👇 #payments #bnpl #buynowpaylater #financialinclusion #fintech #ecommerce

I think this shows a number of payment and financial dynamics at play Cost of living Flexibility Friction See what’s right for your business but more importantly do what’s right for your customers

What are the differences between BNPL (Buy Now Pay Later) and SNBL (Save Now Buy Later)? 💡 . The diagram below shows how both BNPL and SNBL work. 🔹 With BNPL, Bob pays with credit, and BNPL providers help fund Bob’s purchase. The merchant immediately gets the money from BNPL providers, but with a discount. Examples: Klarna Affirm Afterpay. 🔹 With SNBL, Bob first saves cash in a virtual savings account. Once enough money is saved, the product is unlocked, and Bob can purchase it. Bob will get cash rewards from the merchant for saving up. Examples: HyperJar Cashmere App. 🔹 Both models target reducing shopping cart abandonment. However, BNPL has late fees as a penalty. SNBL, on the other hand, focuses on money planning and management, where multiple virtual savings accounts can be opened for different purposes. Also, the customers get rewards from the merchants, which means the return on the savings is much higher than keeping it in the bank. Interestingly, SNBL vendors are functioning like a marketplace. They work with many merchants to offer specific products to customers and negotiate cash rewards. Source: Hua Li x ByteByteGo - https://bit.ly/3HTYDyl #Innovation #Fintech #Banking #Marketplace #OpenBanking #EmbeddedFinance #API #FinancialServices #Payments #Loans #BNPL #Savings #SNBL 

Buy Now, Pay Later is the future of payments. Here’s how it works. 👇 Last Christmas, Americans spent $17M through Buy Now, Pay Later (BNPL). This isn’t just a trend. And if your business isn't on board, you're missing out. Let’s face it: not all customers have the funds to complete their purchases right now. With BNPL, they get to buy your products and pay later in painless installments. That means more sales for you! When a customer chooses BNPL, a third party like Klarna fronts the sale amount. And your business gets paid in full instantly. Think of what that means for your cashflow. Worried about risks? BNPL reduces them. On old-school installment payments, you could get hit with multiple chargebacks. But if a customer files a chargeback on BNPL, you only get charged once. BNPL is a win-win for both you and your customers. Customers enjoy manageable payments You get immediate full payment and minimized chargeback risks. BNPL isn’t just another payment option. It's a strategic business decision ✔️Offer flexible payment to customers ✔️Increase your sales ✔️Improve your cashflow So don’t let your business fall behind. Offer customers Buy Now, Pay Later and watch your sales soar. #PaymentProcessing #PaymentSolutions #BuyNowPayLater

🛍️💳 BNPL: A Double-Edged Sword for Young Shoppers! In 2023, the allure of Buy Now Pay Later schemes soared among the young, especially during the festive season, observes Glynn Davis. However, this convenience came with a cost - unexpected fees and credit score impacts. With a 12.8% rise in online BNPL usage, it's a wake-up call about the hidden risks of easy credit. As retailers like Walmart expand BNPL options, it's crucial for consumers to stay informed and cautious. https://lnkd.in/geu4Pr5y #BNPL #ConsumerAwareness #FinancialHealth"

According to Financial Conduct Authority research, approximately 14 million (27%) of UK adults used Buy Now Pay Later (BNPL) as a payment method at least once in the last half of 2022. This is an increase from the 12 months between May 2021 and May 2022 which saw just 17% using BNPL as a payment channel. "Our research shows a significant increase in the use of BNPL over the past year. When used appropriately, the product provides valuable benefits, but we want to ensure that consumers, particularly those in vulnerable circumstances, have adequate protections and are given sufficient information." Sheldon Mills, Executive Director, Consumers and Competition at the FCA. Read more in Finextra: https://ow.ly/PHXu50Qajc2