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Around 2020, buy now, pay later (BNPL) solutions exploded in popularity, as an increasing number of shoppers across the globe turned to online shopping during a pandemic that caused a significant amount of financial uncertainty. But now, several providers are closing their BNPL offerings. Our own Frode Berg, Managing Director, EMEA, weighs in on the factors causing banks to step back from this growing market in this The Fintech Times article. https://lnkd.in/gJ3acB25

Buy Now, Pay Later (BNPL) is not a new concept but one that banks need to take seriously. In recent years, BNPL services have threatened to disrupt the traditional credit card business, especially for tech-savvy millennial and Gen Z consumers. As BNPL services continue to capture more consumers, banks must act swiftly to remain at the center of consumers’ digital universe. Read our recent #Spotlight article from Giesecke+Devrient to learn more: https://lnkd.in/erBy-DXb #BNPL #banks #disruption

Did you know… ✨ 𝟳𝟬% of users 𝗽𝗿𝗲𝗳𝗲𝗿 𝗯𝗮𝗻𝗸𝘀 𝗼𝗳𝗳𝗲𝗿𝗶𝗻𝗴 𝗕𝗡𝗣𝗟 for trust in lending choices. ✨ Over 𝟱𝟬% of BNPL users are 𝗚𝗲𝗻 𝗭 𝗮𝗻𝗱 𝗺𝗶𝗹𝗹𝗲𝗻𝗻𝗶𝗮𝗹𝘀 who prefer avoiding traditional credit. ✨ 𝟲𝟭% of customers prefer 𝘄𝗵𝗶𝘁𝗲-𝗹𝗮𝗯𝗲𝗹𝗲𝗱 𝗕𝗡𝗣𝗟 over third-party BNPL providers. This #trend is worth $3.98 trillion by 2030, reshaping open banking, lending, service, and retail space. For #businesses embracing BNPL, 𝗿𝗲𝗰𝗼𝗺𝗺𝗲𝗻𝗱𝗲𝗱 𝗯𝗲𝘀𝘁 𝗽𝗿𝗮𝗰𝘁𝗶𝗰𝗲𝘀 include: ☑ Providing varied payment installment options. ☑ Ensuring transparency about BNPL procedures and fees. ☑ Personalizing experiences to recommend optimal payment methods. ☑ Encouraging BNPL use with incentives like discounts or rewards. Don't wait, act now. More than 𝗵𝗮𝗹𝗳 𝗼𝗳 𝘁𝗵𝗲 𝗹𝗲𝗮𝗱𝗶𝗻𝗴 𝗕𝟮𝗕 𝗽𝗹𝗮𝘆𝗲𝗿𝘀 have already embraced or are preparing to implement BNPL (#BuyNowPayLater) for businesses. Merchant-focused #BNPL? It's here. And it's inevitable.

The evolution of the acquisition of goods and services! Forget the associated risks for a second, let’s talk about the convenience of instant affordability and access to credit - revolutionary really! “Click Click” - Buy!

Purchasing items immediately without having to pay the full price up front - seems like a convenient solution....! In particular, tech-savvy Millennial and Gen Z consumers are increasingly using buy now, pay later (BNPL) services, an attractive and convenient payment option that threatens to disrupt the traditional credit card business. But can they flip it into an opportunity? 🏦 After all, compared to current BNPL providers, who often operate in unregulated areas, banks benefit from their decades of experience, well-established relationships with customers and merchants, and a trusted brand name. Therefore, banks may be able to compete with BNPL companies - but to be successful, they must keep up with the times by reimagining their offerings: embracing flexibility and digitalization. Find out more in our Spotlight: https://di-ri.co/rcwuL #BNPL #banks #creditcard #payment

The rise and fall of BNPL providers in recent years offer valuable lessons for the fintech sector. From explosive growth to sobering realities, the journey has been illuminating. Insights from industry experts, such as our own Managing Director, EMEA, Frode Berg, shed light on the forces reshaping the BNPL landscape in this The Fintech Times article.

The retail world is witnessing a fascinating phenomenon: the rise of Buy Now, Pay Later (BNPL). This innovative payment option acts like a financial sugar rush for consumers. It promises instant gratification and manageable installments. But beneath the surface lies a more complex equation, demanding a clear-eyed evaluation of both its advantages and potential drawbacks, #bnpl #fintech #lending https://lnkd.in/d5PBCPH6

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 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

BNPL will increase by 157% soon. Are you missing the tide? According to C+R Research, 3 in 5 people have used a BNPL service. BNPL (Buy Now, Pay Later) allows consumers to make purchases and pay over time, often interest-free. It's transforming the lending and payments industry by offering easy payments, flexible budgeting, interest-free options, no credit checks, increased purchasing power, and risk-free trials. This is particularly beneficial for managers seeking to enhance their BNPL knowledge and enthusiasts wanting to dive deep into its intricacies. 𝐨𝐰 𝐜𝐚𝐧 𝐲𝐨𝐮 𝐥𝐞𝐚𝐫𝐧 𝐦𝐨𝐫𝐞 𝐚𝐛𝐨𝐮𝐭 𝐁𝐮𝐲 𝐍𝐨𝐰 𝐏𝐚𝐲 𝐋𝐚𝐭𝐞𝐫? Access our online course on Buy Now Pay Later 💻 Visit https://lnkd.in/gk_WZeJn 📩 If you want to schedule a customized case study based offline or in person training for your company/College/NGO reach out to us at gfa@inclusivefintechhub.com For Free Learning Videos, follow us on YouTube from here - https://lnkd.in/dfvug-p8 Piyush Singh Swati Bhalla #globalfintechacademy #Inclusivefintechhub #fintech #buildandgrow #innovation #digitalinclusion #financialinclusion