蘑菇AV

Their model proved they can include BNPL loans without hurting most consumers鈥� credit scores

The directive from acting Director Scott Bessent throws recent payments rules like the open banking and BNPL rules into flux

Digital wallets鈥� transformation into commerce enablers speeds up. We make a case for digital-only consumer credit cards. And we see a new threat that BNPL poses to credit cards.

BNPL providers approved 79% of applications in 2022 thanks to counteroffers for subprime borrowers

While BNPL losses remain low, consumers may be overextending themselves, making it harder for consumers to pay off their growing credit card balances

Looking forward, Klarna needs to win over customers as their preferred installment plan provider鈥攁t present, installment plans from traditional credit cards rank as the most trusted among consumers.

The news: Affirm鈥檚 buy now, pay later (BNPL) payment platform will now be available at Mattress Firm, per a press release. Customers can either select Affirm online at checkout or apply using a link sent to their smartphone by an in-store associate. The strategy: BNPL platforms struggle to capture in-store retail purchases, where the bulk of transactions occur.

Our take: Affirm and other major BNPL providers like Klarna have been focusing on platform and payment provider partnerships to grow their acceptance networks. But individual merchant relationships are still important as well鈥攅specially to accelerate growth in specific categories like furniture and home goods.

The tie-up will bring the BNPL provider to a bevy of merchants鈥� checkout pages鈥攚hether they like it or not

The tech is dominating recent headlines as retailer and consumer interest explodes

From a slew of major partnerships to our forecasts for slower user growth, we look at the biggest BNPL trends of 2024鈥攁nd what they mean for 2025.

The buy now, pay later (BNPL) provider has been looking for new ways to grow its overall card presence. It partnered with FIS in February, letting FIS鈥� bank partners integrate Affirm鈥檚 BNPL solution directly into their existing debit card programs. Our take: This tie-up can help Affirm propel its overall volume growth.

CVS puts Novo Nordisk鈥檚 Wegovy (not Lilly鈥檚 Zepbound) on commercial drug formularies: Market reaction to the decision affirms how much influence PBMs like CVS Caremark have over prescription drug access. Eli Lilly may need to explore creative pricing strategies to improve access to Zepbound.

The news: Adyen merchants in the UK can now offer Affirm鈥檚 buy now, pay later (BNPL) payment options at checkout, per a press release. Affirm and Adyen have worked together in the US since 2020. The partnership鈥檚 average annual volume jumped more than sevenfold from 2021 to 2023, according to the release. Why it matters: Affirm entered the UK market in November.

Offering BNPL at checkout can make its buy button more attractive to the 91.5 million US users we forecast will pay with BNPL this year. And Afterpay will gain access to Cash App鈥檚 57 million active users, which can help the BNPL provider circumvent an industrywide user growth slowdown. Our take: Block is trying to tie its various brands more closely to Cash App.

This tie-up defies previous concerns about the viability of funding the BNPL industry

Shoppers are more comfortable than ever using BNPL鈥攁nd not just during the holidays. Buy now, pay later (BNPL) volume will hit $18.5 billion this holiday season, with Cyber Monday alone accounting for just shy of $1 billion in spend, per Adobe. That鈥檚 27.6% more than BNPL holiday sales volume in 2022.

The tie-up can bring in a large new stream of payments volume for the BNPL player, boosting growth ahead of going public next year

On today's podcast episode, we discuss how folks viewed big ticket items over the Thanksgiving holiday shopping period, how in-store foot traffic shook out, and the impact of buy now, pay later (BNPL). Listen to the conversation with our Senior Analyst Sara Lebow as she hosts Senior Analyst Zak Stambor and Analyst Rachel Wolff.