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Afterpay and Klarna will do so by the end of the year. Both need to penetrate in-store sales, are building out debit card programs to do so, and would benefit from the extra interchange. This will help drive BNPL transaction value. Click here to view our full forecast for US BNPL payment value. Leading US mobile wallets will maintain a competitive edge鈥攆or now.

Google Wallet also recently added Afterpay and Klarna, building on its tie-ups with Affirm and Zip. Delinquencies will remain low. Structural repayment differences will keep BNPL default rates lower than those of credit cards. Most BNPL providers require automatic repayments, helping keep rates low.

The final two ads will focus on Cash App鈥檚 Afterpay feature, which lets users pay over time retroactively and is gaining traction among Gen Z customers who prefer flexible payment options. Can it work? The products will likely resonate with Gen Z, which Cash App is also targeting with these ads.

Cash App offers direct deposit, a debit card, a high-yield savings account, and two lending products: the buy now, pay later (BNPL) service Afterpay and Borrow. Dorsey wants to ramp up its offering with wire transfers, check deposits, and bill pay, per Block鈥檚 Q3 2023 shareholder letter. Cash App started piloting Borrow in 2020.

The point-of-sale installment offering will face adoption hurdles given growing competition in the country

This could further propel BNPL volume this holiday season as well as catapult merchants鈥� holiday volume.

The news: US inflation ticked up 0.1% last month and 2.4% YoY, a softer read than many economists expected but one that kept the pressure on consumers already dealing with a higher cost of living. Our take: Retailers, especially grocers and discounters, can set themselves apart by helping consumers save money and be more financially responsible. Offering digital coupons, using in-store signage spotlighting sales on daily essentials, and rewarding loyal shoppers for repeat purchases can foster smarter spending.

Partnerships are key to breaking into brick and mortar, but generational mattress-shopping divides could mute the deal鈥檚 effectiveness.

The insight: Younger consumers are opting out of human interaction when they shop. Our take: While younger consumers tend to adopt new behaviors faster, they鈥檙e also driving the direction of retail innovation. Retailers looking to stay competitive should prioritize the tech-driven, convenience-first features these shoppers now see as table stakes.

Consumers鈥攅specially Gen Z鈥攁re eager to spend on live events: Summer concert ticket sales are at record levels thanks to high-profile stadium tours and the strong appeal of live experiences.

Grocery delivery intermediaries like DoorDash and Uber are gaining ground, offering new ways to reach high-intent shoppers. Meanwhile, retailers like Walmart and Amazon continue to lead with strong delivery infrastructure and valuable customer data.

The global payments industry will be a $2.3 trillion revenue opportunity in 2028. But shifting business models, new technologies, and alternative payment methods are changing how key card players compete for a share of this revenue.

The Latin American consumer banking market is vast, yet over 40% of consumers are currently underbanked. Foreign banks looking to enter the market can tap this audience, but they should learn from and partner with local fintechs to do so.

The BNPL provider has been prepping for this for years. Its profitability push and cost-cutting initiatives should set it up for a strong listing

The partnership highlights the importance of individual merchant deals and larger platform tie-ups

Economic uncertainty could derail its efforts to reinvigorate growth

The reality: Tariff-driven grocery price hikes have been relatively modest so far this year. Food and beverage prices rose 2.9% YoY through mid-May, up from 1.7% a year earlier, per Circana. While tariffs haven鈥檛 caused a major inflation spike, supply-side shocks鈥攍ike drought, avian flu, and extreme weather鈥攈ave pushed up prices on staples such as coffee, eggs, and chocolate. Our take: Tariffs haven鈥檛 led to major price hikes yet, but that鈥檚 likely to change soon as duties push up costs on goods like seafood, alcohol, and produce. And even before those increases take effect, shoppers are becoming more cautious, more price-sensitive, and quicker to trade down or skip nonessentials altogether.

The tie-up can help Affirm鈥檚 strategy of building out its debit card to grow its overall payments volume

Firms must plan for regulatory changes across areas like BNPL, open banking, crypto, and credit cards

Even so, issuers may be slow to lift preemptive APR increases as they brace for economic turbulence

The partnership will help Affirm compete with rival Klarna, which already has a large European presence

Marqeta Flex helps digital wallets and card issuers embed BNPL options, eliminating the need for direct integrations with merchants

Examples include Affirm, Afterpay, Klarna, Zip, and PayPal's BNPL service. Some short-term, no-interest loans can be accessed only at retailers. Examples include Bread Pay and SetPay. Services that provide a revolving line of credit, retailer-branded financing options, closed-loop marketplace financing services, and card-linked installment services are excluded.Less.

Klarna鈥檚 later entry into the US debit card space offers it a pathway to seize more payment volume.

Gen Z is feeling squeezed: High living costs are driving Gen Zers to spend nearly twice as much as they save, which is leading them to prioritize essentials.