蘑菇AV

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

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

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

While this is a win for Klarna, merchants may not want to take on the higher transaction costs that sometimes come with BNPL plans

US buy now, pay later (BNPL) user growth is slowing, plummeting from 97.0% in 2021 to just 4.1% in 2028, according to our forecast.

Expanding into healthcare payments can help invigorate growth for BNPL players as user growth slows

The BNPL industry鈥檚 explosive growth is a thing of the past. The number of US BNPL users will grow only 6.9% in 2024, a major slowdown from prior years. And while payment value will rise at a still-strong rate of 20.8% this year, it too marks a significant deceleration.

It鈥檚 a large volume opportunity for the BNPL player and helps Klarna compete with. It can also help keep users loyal to Apple as its NFC tech opens up

On today's podcast episode, we discuss how a department of justice suggested breakup of Google could change search, the potential impact of Walmart鈥檚 personalized homepages and customer support, what鈥檚 next for the buy now, pay later (BNPL) space, how Tesla鈥檚 new 鈥渃ybercab鈥� could change the world of robotaxis, what charitable donations in America look like, and more. Tune in to the discussion with host Marcus Johnson, director or Briefings Jeremy Goldman, analyst Evelyn Mitchell-Wolf and vice president of Briefings Stephanie Taglianetti.

More consumers are willing to use buy now, pay later (BNPL) services for essential goods, which could be a sign of growing financial strain. Twenty-five percent of BNPL users are financing grocery purchases, while 41% have used the payment method for clothing and shoes, per an April LendingTree survey. 41% of BNPL users said they paid late on a loan in the past year, up from 34% a year ago.

Structural repayment differences will keep BNPL default rates lower than those of credit cards. Most BNPL providers require automatic repayments, helping keep rates low. And many consumers tend to pay down their BNPL obligations before their credit card debts because they鈥檙e smaller and more manageable. Card-linked installments will be BNPL fintechs鈥� biggest competitors.

That hasn鈥檛 yet dampened sales, if only because more consumers are going into debt or using buy now, pay later (BNPL) options to finance the purchase. 86% of Gen Zers admit to overspending during live events, not only on tickets but also on adjacent categories like food and beverages as well as apparel and accessories, per a survey by Merge.

BNPL as a financial tool: Roughly 4 in 10 younger consumers (39% of Gen Z, 43% of millennials) use buy now, pay later to afford purchases they otherwise couldn鈥檛鈥攏early twice the rate of older generations (22%).

US buy now, pay later payment value. US cryptocurreny payment users. US retail social commerce sales.

DoorDash, for example, has broadened its reach by teaming up with a wide range of regional and family-owned grocery chains like Stew Leonard鈥檚 and teamed up with Klarna to offer a buy now, pay later (BNPL) payment option. Uber Eats, meanwhile, is deepening its grocery presence in key markets like New York City, where it has partnered with FreshDirect to offer same-day and on-demand grocery delivery.

The initiative aims to get customers to pay with all of PayPal鈥檚 payment solutions鈥攆rom debit cards to buy now, pay later鈥攅verywhere they shop. Debit card TPV grew 64% YoY in Q1, and the number of Venmo and PayPal debit card users shot up almost 80% YoY. BNPL volume grew more than 20% YoY in Q1, and its monthly active accounts that use the service increased 18% YoY.

Modernizing BNPL. BNPL isn鈥檛 new to Latin America鈥攊t鈥檚 the digital evolution of a decades-old habit. In Venezuela, the Cashea app gained 1.2 million users in just over a year from launch by offering four interest-free payments and charging only for missed ones, per Bloomberg.

Consumers expect inflation to ease but not vanish鈥攎edian one-year-ahead expectations dipped to 3.2% in May, still well above the Fed鈥檚 2.0% stability target, per the New York Fed. 25% of consumers who use BNPL are financing groceries, up from 11% last year, suggesting that they鈥檙e feeling strained, per LendingTree. What鈥檚 next: More price pressures are coming.

BNPL providers will race to adopt the technology. 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.

The agency has dropped its lawsuit against Zelle and is expected to scrap its BNPL rule. Its rule to regulate apps like Apple Pay and Google Wallet as banks is also being undone by Congress.

Gen Zers are trading down to debit cards or other alternatives like buy now, pay later (BNPL), potentially eroding payments volume, swipe fee revenues, and interest income for issuers. Our take: Issuers improve Gen Zers鈥� relationship with credit cards by being transparent about interest rates and other fees.

They鈥檙e also leading the charge in buy now, pay later (BNPL) adoption. Over the holidays, 54% of Gen Zers used BNPL, outpacing the 50% who used credit cards, per a J.D. Power survey. That鈥檚 well ahead of the general public, where only 32% used BNPL, compared to 61% who used credit cards. Gen Z鈥檚 reliance on BNPL is only growing.

Targets Gen Z through small-dollar loans (Cash App Borrow) and Buy Now, Pay Later (Afterpay). Appeals to underserved teens and families, with an average loan size under $100. Gained FDIC approval to originate loans, expanding its lending capabilities. SoFi鈥檚 partnership with Nova Credit:.