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Apple’s long-teased buy now, pay later service is finally here, but what can it bring to an already crowded table? Our analysts unpack who may use Apple Pay Later and evaluate five of its prerelease features to see how they stack up to consumer demand.

On today's episode, in our "Retail Me This, Retail Me That" segment, we discuss the state of the buy now, pay later (BNPL) union, whether Gen Z will be BNPL users for life or migrate to credit cards, and the stumbling blocks the new payment method faces. Then for "Red-Hot Retail," our analysts give us four of their very specific—and potentially risky—predictions about BNPL in 2023. Join our analyst Sara Lebow as she hosts analysts Sky Canaves and Grace Broadbent.

37% of US Gen Zers and 32% of millennials have used a buy now, pay later (BNPL) service to make at least one purchase recently, according to Morning Consult.

As economic pressures weigh down on consumers, 20% plan to use BNPL to help stretch their holiday budgets, per TSG and ETA.

The number of US BNPL users has doubled since 2021, even though firms can’t fund rewards as richly as issuers do. But they do have retail connections.

Consumers look for deals, flexible payment options this holiday season: Over three-quarters of shoppers plan to hunt for discounts, while BNPL use is set to soar amid financial constraints.

GreenSky may be an attractive acquisition as consumers rely more on BNPL for essential purchases

Gen Zers will drive the growth of emerging payment methods, opening the door for providers to reach them through digital and mobile. But card-based payment methods are still relevant. To tap their rising spending power, providers must align their offerings with how Gen Z prefers to pay.

To keep up the momentum, the BNPL provider launched a Pay-in-2 product so it can expand into new payment categories

The travel booking site partnered with Stripe and Klarna to offer BNPL and smoother bank transfers.

The expected record-high rates will raise demand for budgeting tools, rewards focused on everyday spending, and BNPL.

Holiday retail sales will grow by approximately 4.5% in 2023, a slight increase from the previous year’s 3.9% growth, according to our June forecast. While this growth may not seem significant, it would represent the sixth-fastest growth rate in holiday sales in the past 15 years, according to our forecast.

Apple’s product strength and established wallet reach will make the solution a prime competitor in a crowded market.

On today's podcast episode, we discuss the most important parts of the EU's new AI Act, what's missing, and how these rules could shape US regulation. "In Other News," we talk about what nefarious GPTs can get up to and a card-linked buy now, pay later (BNPL) offering. Tune in to the discussion with our analysts Carina Perkins and Yory Wurmser.

Article: Affirm lays out profitability strategy following strong quarter. Methodology: Estimates are based on the analysis of survey and traffic data from research firms, historical consumer adoption and buying trends, payment adoption trends, reported company data, interviews, demographic and socioeconomic factors, and macro-economic conditions.

During the event, BNPL transactions accounted for 6.4% of all orders, creating $461 million in revenues, most of which probably went to Affirm. Afterpay has recently teamed up with Ikea to offer BNPL services in-store and online for all US shoppers, which may help drive revenues for both the BNPL provider and Ikea. This was originally featured in the Retail Daily newsletter.

The media model popularized by retailers is now being adapted by companies in other verticals. Financial services and travel companies are among those launching commerce media networks in a bid to monetize their first-party data.

Proximity mobile payments are on a growth tear, driven by strong spend per user. Here’s how providers are using wallet integration and new features to make proximity payments stickier.

The capability should help boost Pix’s in-store volume, serving as a roadmap for the US’s FedNow to boost retail adoption

So next year, more than half of Gen Z digital buyers will use buy now, pay later services like Klarna and Affirm, putting them ahead of any other generation, including Millennials, in terms of use according to our forecast. What are the implications of this BNPL trend? Arielle Feger:.

The creator economy, plus CTV and commerce media more recently, have made affiliate marketing more visible among marketers.

Small-business and BNPL growth underscores two holiday trends and could direct investment for 2023.