Latest news with #BNPL
Fast Company
14 minutes ago
- Business
- Fast Company
Buy now, pay later: Why 52% of Americans trust it—and what brands need to know
Buy now, pay later (BNPL) is reshaping how Americans approach spending. Once viewed as a financing solution for bigger-ticket purchases, the service has grown into an everyday convenience with the potential to disrupt how businesses connect with and convert customers. At PartnerCentric, we conducted a nationwide survey of more than 1,000 consumers to understand BNPL's current adoption and future trajectory. The insights surprised even us: BNPL is not just growing—it's fundamentally altering the consumer journey in ways that smart businesses should pay attention to. According to our data, 52% of U.S. consumers currently use BNPL, with Gen Z and Millennials leading the charge. What's more, 15% of consumers are trying it for the first time in 2025, with 35% saying they plan to increase their usage this year. They are also using this payment option across a range of categories, from electronics and home goods to groceries and even food delivery. In a recent conversation with Newsweek's Hugh Cameron, I discussed how BNPL plans have transcended simple checkout convenience. Now they're empowering shoppers to set their own financial rhythms, whether that means smoothing out weekly grocery bills or snagging concert tickets without delay. This evolution reflects a deeper consumer craving for payment tools that bend to the tempo and tensions of everyday life. Brands should seize this moment by positioning BNPL as a tool of empowerment, leading with messaging that emphasizes customer control over cash flow and weaving installment options into product pages, cart previews, and marketing touchpoints. Partnering on co-marketing promotions with BNPL platforms can extend your reach to already-engaged shoppers. Consider curating bundles or exclusive offers that resonate with high-margin items, based on an analysis of which categories and SKUs see the biggest lift with BNPL. From our study, what stood out is how BNPL affects purchasing behavior. The average user now makes five purchases per month using BNPL, totaling around $761 in monthly payments. What's more, nearly half of users admitted to spending more than they would have without the service or said that it increased their impulse buying. This data tells brands that BNPL isn't just a new way to pay. It's a proven catalyst for bigger baskets and more frequent purchases. You're looking at a predictable uplifter for both average order value and overall sales volume. By actively promoting—and optimizing—installment plans throughout the shopping journey, you can tap into consumers' willingness to spend more and buy more often. CHECKOUT IS WHERE BNPL MAGIC HAPPENS One of the most actionable insights from our study is that BNPL is often discovered in the moment. One-third of consumers tried it for the first time at checkout, and another 34% said they first heard about it from friends and family. Meanwhile, the Federal Reserve Bank of Boston's 2023 Survey and Diary of Consumer Payment Choice found that 53% of respondents had BNPL explicitly offered to them, up from roughly one-third in 2021. This underscores how point-of-sale prompts have become a primary discovery channel. Offering BNPL doesn't just give customers another way to pay. It creates an opportunity to remove hesitation and nudge decisions forward when price might otherwise be a blocker. For many, it feels like a risk-free trial run on spending. A seamless technical integration—ideally, one-click pre-qualification—will ensure the flexibility you promise doesn't stall at the 'buy' button. Ongoing monitoring of conversion rates, average order values, repeat-purchase behavior, and evolving regulatory requirements will then help you fine-tune your strategy and maintain compliance. CREDIT CARD ALTERNATIVE—OR CREDIT CARD COMPETITOR? Among BNPL users, most say they prefer it to using a credit card. And it's easy to see why. Unlike credit cards, BNPL services typically don't charge interest or immediately affect credit scores. So these platforms are seen as more trustworthy and less intimidating than traditional credit. Still, the landscape is shifting. Credit bureaus like Experian and FICO have started including BNPL data in reports, prompting mixed reactions. Some experts urge caution, while others feel it is a necessary reality in today's economic environment. This evolution signals a move toward normalization—and possibly even regulation—as the appetite for BNPL remains strong. BNPL IS A STRATEGIC SIGNAL, NOT A SALES TACTIC For modern consumers, financial flexibility isn't a perk—it's a baseline as they consider how to manage money in an economy defined by volatility and high expectations. So brands must rethink how they meet their customers. Buy now, pay later isn't about pushing debt—it's about offering control, convenience, and choice in one click. It says, 'We get it. We've built it for your reality.' That kind of empathy at checkout builds trust, loyalty, and relevance. As the cost of living continues to rise and credit card fatigue grows, BNPL offers something rare: a solution that works for both the business and the buyer. Brands that treat BNPL as a strategic layer in the customer experience can see measurable impact: higher conversions, larger baskets, and deeper engagement. So if you want to stay connected to the pace of real life, now is the time to lean in. The super-early-rate deadline for Fast Company's Most Innovative Companies Awards is this Friday, July 25, at 11:59 p.m. PT. Apply today.
Glasgow Times
3 hours ago
- Business
- Glasgow Times
Rules set to change for Klarna Clearpay and other BNPL firms
Under a consultation put forward by the Financial Conduct Authority (FCA) borrowers will also be able to complain to the Financial Ombudsman Service if something goes wrong. The rules, giving consumers more transparency over what this type of borrowing involves, would take effect when buy now, pay later (BNPL) comes under the FCA's remit next year. The new oversight by the FCA would mean that BNPL borrowers will have key protections that already exist for other types of lending. The FCA also oversees the Consumer Duty, which requires financial firms to put consumers at the heart of what they do, including when designing products and communicating with their customers. Sarah Pritchard, deputy chief executive at the FCA, said: 'We have long called for BNPL products to be brought into our remit, so people can benefit from BNPL while being protected. 'Our regulation will help consumers navigate their financial lives, with checks on whether they can afford to repay, support when things go wrong and access to the right information to make informed decisions. 'We're mainly relying on existing requirements, including the Consumer Duty, rather than proposing to make lots of new rules, supporting growth and allowing firms to innovate.' BNPL products are a way for people to spread the costs of purchases without paying interest. BNPL options regularly pop up at online checkouts. But concerns have been raised that some people could end up taking out loans that they cannot afford to pay back on time, incurring charges. According to the FCA's research, one in five (20%) UK adults – equating to 10.9 million – had used BNPL at least once in the 12 months to May 2024, up from 17% in 2022. In May 2024, 2% of UK adults (equating to 1.1 million) had £500 or more outstanding unregulated BNPL debt, and 11% of UK adults (5.3 million) had £50 or more outstanding, the regulator found. The FCA's consultation is open for feedback until September 26 2025. A temporary permissions regime will be open for firms to register two months before the regime comes into force on July 15 2026. Firms will then have six months from the date the regime comes into force to apply for full authorisation. BNPL is a broad term which can include some credit agreements that are already regulated, the FCA said. Its new proposals relate to unregulated BNPL agreements, referred to as deferred payment credit (DPC). The Government has made legislation to bring DPC products under FCA regulation. DPC refers to unregulated interest-free credit, which finances the purchase of goods or services and that is repayable in 12 or fewer instalments within 12 months or less. Lenders who only provide DPC do not currently need to be FCA authorised, leading to concerns that some borrowers may not be receiving enough information about what credit agreements involve. Alison Walters, interim director of consumer finance at the FCA, said: 'Our proposals are aimed at ensuring that consumers get good consumer outcomes and that there is an appropriate degree of consumer protection. 'And by that, we mean that consumers get the right information, in the right way, at the right time, so that they can make an informed decision about their buy now, pay later lending.' She continued: 'What we're asking in our rules is for firms to carry out an affordability check, to ensure that consumers are able to pay. And if they get into financial difficulty to provide them with an appropriate level of support. 'We also want them to give more information in relation to late fees, consequences if they miss a payment, and impacts, for example, if it may affect credit ratings. 'And also information about their withdrawal and cancellation rights.' She added: 'If something goes wrong, consumers will be able to refer their complaint to the Financial Ombudsman Service.' Ms Walters said that in terms of supporting those in financial difficulty: 'Under our existing rules, firms can offer forbearance to consumers if they get into financial difficulty.' She said that could include changes in the payment plan and people can also be signposted to debt advice or other support mechanisms. Ms Walters added that under the new rules 'we still think that this market will be viable and profitable'. She pointed out that the BNPL market has already grown in size and popularity. According to the regulator, DPC lending has grown from £0.06 billion in 2017 to more than £13 billion in 2024. Maxine McCreadie personal finance expert at UK Debt Expert advises caution: 'Buy Now, Pay Later can be a useful way to manage your money, especially for larger purchases where you've planned and budgeted. But regularly using it to buy smaller, everyday items could lead to financial problems. It feels like it's become too easy to delay payment without really thinking through the long-term consequences. 'One of the big issues is how BNPL is marketed. It's often positioned as something separate from traditional credit, which can make it feel less serious - but the reality is, it's still a form of debt. Miss a payment and you could find yourself facing late fees and doing damage to your credit score. 'New rules coming into force next July will mean that shoppers will have to pass stricter affordability checks before being approved for BNPL products, and I think that's a positive move. It brings BNPL more in line with other credit products, and should help people stop and think before clicking 'pay later' at checkout. 'Ultimately, it's about reminding people that these services do have a financial impact and encouraging them to make informed, considered choices rather than falling into a cycle of spending that could be hard to break.' A Klarna spokesperson said: 'After five years of constructive work with HMT (HM Treasury), we're entering the home straight to make BNPL regulation a reality – a major win for UK consumers. 'We're looking forward to working with the FCA on rules that protect consumers while keeping choice and innovation at the heart of the UK credit market.' A spokesperson at BNPL provider Clearpay said: 'We will support the FCA as it consults on and finalises its specific rules for the sector.' The spokesperson said regulation 'will establish a consistent operating environment and clear compliance standards for all providers,' adding: 'Clearpay research highlighted that nearly half of UK adults (48%) are more likely to use BNPL once regulation is passed, and with 71% believing that it is important for BNPL to be subject to UK financial legislation, today's announcement will help foster trust among consumers. 'It will also create a more sustainable foundation for the future of BNPL as it continues to grow as an everyday payment option for consumers.' Vikki Brownridge, chief executive of StepChange Debt Charity, said: 'It's incredibly reassuring to see the FCA's consultation on its proposed approach to regulating buy now, pay later.' She added: 'Whilst BNPL can be a useful budgeting tool, it can deepen debt problems, and it is important struggling consumers are afforded the same level of protection as for other forms of credit. 'Bringing BNPL firms in line with the wider credit market, when regulation begins next year, will provide an added layer of protections for consumers, a much-needed change as StepChange polling found that BNPL users are twice as likely as all credit users to borrow to cover essential bills, and our research also found that BNPL is now as common as using an overdraft amongst UK adults.' Vix Leyton, a consumer expert at app ThinkMoney, said BNPL 'can be a really useful tool, particularly when life throws you an unforeseen cost that drives a wrecking ball through your budget. 'But while spreading the cost can take the pressure off, it's temporary relief if it's not done responsibly and mindfully.' Recommended reading: She added: 'Proper affordability checks, in line with other credit products, are vital to stop people unintentionally kicking the financial can down the road, as is making sure that those in financially vulnerable positions understand the consequences of missed payments.' Rocio Concha, Which? director of policy and advocacy, said: 'Buy now, pay later can be a really convenient way to spread the cost of items, but because it is not yet regulated, it hasn't come without risk to consumers. 'Regulation will mean that consumers will be subject to affordability checks to ensure responsible lending as well as making sure they are given sufficient information about the credit they are taking on and the risk of falling into debt.'
Globe and Mail
4 hours ago
- Business
- Globe and Mail
The Zacks Analyst Blog Highlights Visa and Affirm Holdings
For Immediate Release Chicago, IL – July 23, 2025 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Visa Inc. V and Affirm Holdings, Inc. AFRM. Here are highlights from Tuesday's Analyst Blog: Visa vs. Affirm: Old School & FinTech - Who Wins the Payment War? Visa Inc. and Affirm Holdings, Inc. both are now operating at the forefront of the payments landscape, one as a decades-old card network with global scale, the other as a fast-growing fintech innovator in buy now, pay later (BNPL). Visa processes trillions in consumer and commercial payments each year, earning reliable fee-based revenues. Affirm, by contrast, has carved out a niche financing model that embeds point-of-sale loans directly into e-commerce checkouts. With growing competition from Big Tech and evolving consumer preferences, investors must decide whether Visa's entrenched network or Affirm's disruptive momentum offers better upside. Let's dive deep and closely compare their fundamentals to determine which stock is the stronger investment opportunity today. The Case for Visa Visa remains a dominant force in global payments, operating one of the most extensive and secure card payment networks in the reported second quarter fiscal 2025 net revenue of $9.6 billion, up 9.3% year-over-year on an 8% gain in payments volume and strong cross-border growth. Its durable competitive moat lies in its sprawling global network, which captures more than half of purchase volume in the United States and billions of digital transactions. Visa Inc. price-consensus-eps-surprise-chart | Visa Inc. Quote Its entrenched global reach, strong brand trust and deep integration with financial institutions continue to make it a backbone of the traditional payments bolstered shareholder returns with $5.6 billion in buybacks in the last reported quarter and a fresh $30 billion repurchase authorization, underscoring cash-flow strength. Beyond core card transactions, Visa is pushing into digital payments through Visa Direct, tapping into peer-to-peer and business payouts. It is also investing in real-time payments infrastructure and API-based solutions to remain relevant in a rapidly digitizing financial landscape. However, Visa's growth is naturally tied to the pace of consumer spending and cross-border transactions, both of which are increasingly vulnerable to economic cycles and inflation pressures. Additionally, Visa's business model is primarily fee-based and intermediated, dependent on banks, merchants and processors. This layered structure contrasts with the emerging direct-to-consumer models that fintech disruptors are leveraging to sidestep traditional rails. As the payments landscape shifts toward embedded finance and alternative credit models, Visa's legacy advantage may be less compelling for tech-savvy Gen Z and millennial consumers seeking speed, flexibility and something fresh. The Case for Affirm Affirm represents the modern alternative to traditional credit cards, with its BNPL model reshaping how consumers finance purchases. In fiscal third-quarter 2025, Affirm's revenues improved 36% year over year to $783.1 million, driven by higher gross merchandise volume (GMV) and expanded merchant relationships. Its active consumer count rose to 21.9 million, and transactions per active user grew by 21.7%, showing rising engagement and repeat usage. Affirm Holdings, Inc. price-consensus-eps-surprise-chart | Affirm Holdings, Inc. Quote What makes Affirm structurally compelling is its ability to operate outside the traditional credit-card networks. Its partnerships with Shopify, Amazon, Costco and Apple allow it to plug directly into consumer spending. Affirm's AI-powered underwriting tools and real-time risk assessment give it the agility to approve users more accurately and scale profitably. Unlike Visa, which largely benefits from payment routing, Affirm profits from originating and managing consumer credit directly. The company's diversified funding model, including 24 securitizations totaling $12.25 billion and relationships with 150+ capital partners, underscores its growing operational maturity. And while Affirm is not yet consistently profitable for a long period, its investments in automation, gen AI, and merchant analytics tools are positioning it for long-term operating leverage. With younger demographics favoring transparent instalment payments, Affirm is well-aligned with consumer trends. Internationally, Affirm is scaling through a strategic partnership with Shopify to enter Western Europe, following its U.K. launch. With more than 358,000 merchant partners, this global push opens up significant new revenue streams. Affirm is also broadening its ecosystem beyond core BNPL, investing in debit card offerings and B2B tools to further diversify business. AFRM's long-term debt-to-capital of 71.8% is significantly higher than Visa's 30.7%, but that is not entirely unexpected for the fintech, still scaling operations. Affirm's high leverage reflects its aggressive growth strategy and non-bank structure, which is normal for its business model, but also means higher interest expense risk and greater exposure to credit market tightening. How Do Zacks Estimates Compare for V & AFRM? The Zacks Consensus Estimate for Affirm's bottom line is comparably favorable at this stage. The consensus estimate for V's fiscal 2025 earnings indicates a 13.1% increase from a year ago, while the same for revenues suggests 10.3% growth. On the other hand, the Zacks Consensus Estimate for Affirm's fiscal 2025 EPS indicates 101.8% year-over-year improvement, and the same for revenues signals a 37.1% rise. Valuation: V vs. AFRM On a price-to-sales basis, Visa sits at 15.04X forward revenues, significantly above the industry average of 6.30X. By contrast, Affirm's price-to-sales multiple is at 5.41X, in line with its high growth fintech peers. Affirm's cheaper P/S multiple leaves room for significant growth as business expansion accelerates. Price Performance Comparison Visa has returned 32.5% in the past year, buoyed by resilient spending trends and market optimism. Affirm, meanwhile, has delivered a massive 127.5% return, driven by its outsized revenue growth and positive guidance surprises. Both have outperformed the industry and the S&P 500 Index during this time. Conclusion While Visa with a Zacks Rank #2 (Buy), continues to dominate global payments with scale, profitability and unmatched trust, its model is comparatively mature and tethered to the pace of economic activity. Affirm, in contrast, is riding structural tailwinds, consumer credit disruption, embedded finance and a flexible payment demanding user base. Affirm's significant revenue growth, expanding merchant base and growing user engagement point to accelerating momentum. Its nimble, vertically integrated platform gives it more control over the customer experience, and its recent international push and AI investments signal it is just getting started. Yes, Affirm carries higher leverage and is still scaling, but its valuation reflects that upside potential. Given its faster growth trajectory, more favorable Zacks estimates and outperformance in the stock market, Affirm currently offers more compelling upside for investors seeking the next phase of fintech and payments evolution. AFRM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Visa Inc. (V): Free Stock Analysis Report Affirm Holdings, Inc. (AFRM): Free Stock Analysis Report
Finextra
5 hours ago
- Business
- Finextra
Mondu adds pay now element to BNPL product suite
Mondu, the fast-growing B2B Fintech, has launched Pay Now, an account-to-account (A2A) instant payment solution for B2B e-commerce. 0 This new offering complements Mondu's existing Buy Now, Pay Later (BNPL) products, providing a comprehensive payment experience for online business buyers. The European B2B e-commerce market is experiencing explosive growth, projected to reach $2.2 trillion by 2027, almost double the value in 2022. This rapid shift to online sales highlights the increasing demand for more flexible and streamlined payment solutions. As businesses adapt to this digital-first environment, digital B2B payments are becoming a crucial tool. The European B2B BNPL market is projected to grow at an annual rate of 27.5% percent, reaching $256.7 billion by 2029. Mondu's new Pay Now product is the latest addition to its BNPL suite, which includes invoice payments, instalments, and digital trade accounts, creating a holistic proposition that directly addresses market needs. Pay Now allows buyers to pay directly from their bank accounts, providing a secure and streamlined checkout experience. It enables merchants to serve all buyers, whether they are eligible for deferred payments or not. For merchants, this means a hassle-free integration that eliminates the need for a separate A2A payment provider and simplifies reconciliation. Mondu handles risk and fraud checks, provides payment confirmation, and manages all buyer communication, allowing merchants to focus on their business. Malte Huffmann, Co-CEO of Mondu, said, "We've seen immense interest from existing customers in Pay Now. Our goal is to provide a comprehensive payment solution that caters to the evolving needs of B2B buyers and sellers. With Pay Now, we offer a best-in-class experience, combining the flexibility of BNPL with the simplicity of instant payments." In just three years, Mondu has become a prominent player in the European B2B payments industry, working with leading retailers and marketplaces, including Notebooksbilliger, WirMachenDruck, GGM Gastro, Enpal, Autodoc, Solago, and Qogita.
New Straits Times
12 hours ago
- Business
- New Straits Times
Consumer Credit Bill to tackle hidden risks in BNPL, instant loans
KUALA LUMPUR: The introduction of the Consumer Credit Bill 2025 will protect Malaysians from financial risks stemming from uncontrolled credit use and unethical lending practices. The Finance Ministry said the comprehensive legislation aims to address challenges posed by the growing digital finance landscape, including hidden risks linked to instant loans and Buy Now Pay Later (BNPL) schemes. "The bill will serve as the primary law regulating all credit-related businesses and services. It will ensure fair conduct by credit providers, mandate transparency in charges, and introduce professional guidelines for debt collection and dispute resolution," it said in a statement. The ministry also said consumers facing financial hardship will also have access to assistance and advice through authorised and registered channels. "For the first time, a Consumer Credit Commission will be established to regulate service providers previously operating without direct oversight, including leasing companies, factoring firms, debt collection agencies and non-bank digital financing providers. "The commission will also streamline regulatory functions currently spread across multiple ministries and agencies under one roof, ensuring more uniform and efficient supervision of the credit industry," it added. The ministry said the bill reflects the government's long-term commitment to creating a safer and more inclusive consumer credit ecosystem, with phased implementation expected to significantly impact the country's financial landscape. Yesterday, the Dewan Rakyat passed the bill after it was tabled for its second and third readings by Deputy Finance Minister Lim Hui Ying today, and was debated by 23 lawmakers. Once gazetted, Lim said, the bill will introduce integrated regulations in phases, taking into consideration the industry's level of preparedness and the growing capacity of the Consumer Credit Commission, which will be gradually strengthened throughout each phase. She added that the commission will also assume regulatory responsibilities in stages, starting with currently unregulated credit providers, with full centralisation of oversight expected by 2031.
