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That鈥檚 driving up use of alternative payment methods like buy now, pay later (BNPL), which accounted for $25.9 billion of online sales in the first four months of 2024鈥攁n increase of 11.8% YoY, per Adobe. The shifting retail landscape: Adobe鈥檚 report found that shoppers chose cheaper products across a number of categories, including personal care, electronics, apparel, furniture, and grocery.

Aside from standard debit and credit card checkout, consumers already have access to offerings like one-click checkout; buy now, pay later (BNPL); and network-branded payment offerings. It might be hard for the forthcoming wallet to stand out from the noise. And some consumers may resist signing up for another checkout option.

Gen Z鈥檚 love of digital payments is well known, especially for peer-to-peer apps like Venmo and buy now, pay later (BNPL) options. They鈥檙e also quickly growing adoption of in-store digital payments like Apple Pay: While they currently trail millennials, by 2026 the gap will narrow (42.1 million Gen Z users versus 45.6 million millennial users) as Gen Z continues to build buying power.

Gen Z is the generation most likely to use buy now, pay later services to make a purchase, which makes sense, as the cohort includes younger buyers who haven鈥檛 built up credit yet but still want to finance small purchases.

AI saved Klarna about $10 million annually, the buy now, pay later provider noted. It uses AI for copywriting, generating images, and other tasks. The company cut external agency expenses by 25% and credited AI with making it 鈥渓eaner, faster, and more responsive.鈥�. Time and task saver: Klarna鈥檚 moves reflect a broader trend.

Most healthcare AI startups want to sell their solutions to health systems: But these tech companies struggle to demonstrate their value prop to potential healthcare provider buyers.

During the same period, the number of BNPL users will rocket 37% to 112.7 million. And while crypto payer penetration lags, the number of payers will have almost doubled between 2021 and 2025, reaching 5.0 million. In each of these cases, Gen Zers and millennials are driving growth. Tap-and-pay has become the preferred way to pay in-store.

They could shift their marketing to focus on other products in their mobile wallets, like their point-of-sale payments and buy now, pay later services. The takeaway: Payment providers across the industry need to adapt to changing consumer payment preferences. For example, Visa鈥檚 slew of announcements last week show how the payment network is planning for the future and trying to stay competitive.

So I think we'll see more expansion of these three to 12 month payment plans with fixed fees that are essentially much lower interest rates and maybe more affordable for consumers. Sara Lebow:. I'm interested in how those Buy Now, Pay Later stats become maybe in the next few years, more of an economic indicator, especially if we'll be able to see where people are using Buy Now, Pay Later.

BNPL providers like Affirm and Klarna, which are already popular with Gen Z, have also launched debit cards to capture more spending volume.

Article: Buy now, pay later sees holiday spike. Will low consumer adoption slow down the major players next year? Methodology: Data is from an October 2022 "2022 Deloitte Holiday Retail Survey." During September 6-14, 2022, 4,986 US internet users were surveyed online. The survey has a margin of error of +/-1-2 percentage points for the entire sample.

That buy now, pay later data, that growth rate is actually right in line with our forecasted growth rate overall. So you said buy now, pay later is grew at 20% year over year. That's exactly where we've got it at in our forecast for US buy now, pay later growth year over year. That's for a total of 72 billion this year.

Amazon adds new BNPL option to strengthen digital wallet. More Chart of the Day:. 8/30 - TikTok's time takeover. 8/29 - Instagram remains king. 8/28 - Digital commerce鈥檚 pay day. 8/25 - Social video slows. 8/24 - The rise and fall of ecommerce growth.

Embedded finance 2.0, per Kedia, will take things a step further, expanding into new use cases like accelerated wage access, buy now pay later (BNPL), and SMB credit lending. Purushotham said embedded payments are a theme for a lot of Citi Venture鈥檚 investments and will be a force going forward in payments.

This might include banking services that reach underbanked populations, buy now, pay later (BNPL) support for Gen Zers, or value-added security features that win over nervous holdouts. To view the full forecast, click here. Growth in mobile P2P payment spending is outpacing adoption, as cash usage falls and new features multiply.

Buy now, pay later (BNPL) is forecast to nearly double to 12.1% of ecommerce transaction value by 2025, according to FIS鈥� 2022 Global Payments Report. Our March 2022 The Bank in 2025 report explores how FIs can compete, partner, and thrive in a fintech ecosystem. Decide whether to participate in super apps. 

Buy now, pay later is a great example. The younger generations tend to gravitate towards those types of products, and they might have more than one buy now, pay later, but at a certain point it may make sense for them to do consolidation.

Microsoft has been beefing up the browser by adding things like BNPL financing options and a Bing button extension. Launching a crypto wallet could open up the browser to more use cases and payments volume鈥攁s well as cross-sell marketing opportunities to crypto-enthused consumers.

Obviously we've seen a huge trend with buy now pay later, and Apple just released its own buy now pay later product. How do we expect this to influence how people shop long term and how does that tie into how young people think about money? Sky Canaves:. I think right now, from what we see, Gen Z is still spending.

Amazon adds new BNPL option to strengthen digital wallet. Apple鈥檚 financial services marketing promotes an immersive lifestyle, not just products. US mobile wallet users prefer PayPal, especially for online purchases.

Sellers that generate more than $500,000 in annualized GPV accounted for 39% of Square鈥檚 GPV mix and were the firm鈥檚 fastest-growing seller segment in the fourth quarter: Profits from this group increased 16% YoY, outpacing Square鈥檚 7% YoY profit increase (excluding buy now, pay later). Global expansion. Block introduced several of its products across global markets last year.

BNPL for businesses will also emerge this year. Consumer popularity could trickle into the business realm, especially as cash-strapped providers aim to diversify their offerings. Several fintechs like Resolve and Behalf are already operating in the space, while major banks including Santander are moving in. All-in-One B2B Solutions Can Generate Revenues.

BNPL volume from Afterpay jumped 25% to nearly $7 billion. Square gross payment volume (GPV) rose 6% to $50.46 billion鈥攁nd rocketed 23% outside of the US. Nearly one-quarter of Square鈥檚 revenues came from banking services during Q1. Block also disclosed that the $220 million Bitcoin investment it made in 2020 and 2021 has ballooned 160% to $573 million.

Klarna Bank CEO Sebastian Siemiatkowski told Bloomberg TV that all employees at the Swedish buy now, pay later fintech are offered a ChatGPT-4 account and encouraged to experiment with the new tech. 鈥嬧��

So with buy now, pay later, for example, being able to offer right-sized buy now, pay later options for right-sized purchases was the name of the game. Being in a position where you don't understand the consumer and offering a buy now, pay later option that isn't relevant is probably just as damaging as offering too much credit at point of checkout. Tiffani Montez:. Yeah. That's a great point.