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The news: FICO will release credit scores that incorporate buy now, pay later (BNPL) reporting this autumn, per a press release. Our take: Reporting BNPL data to the credit bureaus would be a solid step toward combatting BNPL鈥檚 鈥減hantom debt鈥� criticism.

The news: Klarna partnered with Nift, a gift platform, to offer 鈥済ift鈥�-style rewards for customers鈥� BNPL purchases. Our take: Until they can close that gap, BNPL players will struggle to attract a meaningful share of shoppers. It鈥檚 one reason we forecast BNPL user growth will slow every year through 2029.

The news: Google Pay added Klarna to its in-app BNPL roster of Affirm, Zip, and Afterpay. Our take: Klarna鈥檚 late adoption of a physical card like Affirm鈥檚 Affirm Card in the US set the BNPL provider back in terms of capturing a wider user base and payment volume. Integrations like Google Pay and Apple Pay can help overcome that gap鈥攖hough Affirm also has partnerships with both Google Pay and Apple Pay.

Shifting consumer preference toward fixed installments shows how BNPL can compete with credit cards鈥� incentives.

Millennials and Gen Zers can finance snow sport luxury with BNPL鈥攂oosting Affirm鈥檚 non-retail volume.

Gen Zers are most likely to experience a problem with the payment method. These concerns could weaken BNPL transaction growth

To compete, fintech still must measure up against regulated and consumer-favorite card-linked installment plans.

The news: Affirm partnered with Shopmonkey and Xsolla so auto mechanics and video game developers can offer installment plans at checkout. Our take: Affirm has focused on building out its partnership network and the Affirm Card鈥攁nd its fiscal Q3 results (ended March 31, 2025) bear out the strategies鈥� success, with total revenues increasing 36% YoY.

The news: Klarna is pivoting toward digital banking in the US, preparing for its IPO amid growing scrutiny of the buy now, pay later (BNPL) market. This includes launching US debit cards and expanded savings offerings, with Klarna rebranding itself as a neobank aiming for a "super app" experience. Our take: This signals a broader trend of fintechs evolving into banks, intensifying pressure on traditional financial institutions (FIs) to differentiate. FIs must clarify their niche, pursue strategic scale, and accelerate digital transformation. Despite Klarna's expansion, FIs retain a key advantage: their card-based installment plans still outperform BNPL in customer satisfaction.

The ease and novelty of BNPL loans can rapidly snowball into a crisis for already financially fragile consumers.

The news: Sezzle debuted a suite of payment and deal-hunting features, per a press release. Our take: Sezzle needs to find any kind of foothold in the BNPL space, as its market share is massively outstripped by competitors like Klarna and Affirm.

The news: Klarna will offer unlimited 5G data, talk, and text for $40/month with coverage on AT&T鈥檚 network in the US, per a press release, with plans to expand this deal to the UK and Germany soon. Our take: Klarna鈥檚 ambitions to be a BNPL provider, a mobile phone service, a neobank, and most recently鈥攁ccording to CEO Sebastian Siemiatkowski鈥斺�渁 digital financial assistant,鈥� per CNBC, signals the company鈥檚 voracious appetite to be everything at once.

The news: Klarna will be the default payment option for Bolt鈥檚 CheckoutOS merchants, per a press release. Our take: Klarna faces multiple challenges. It has to increase its availability to US consumers while also rivaling credit cards that offer both installment plans and cash back or points that likely exceed the value of Klarna鈥檚 gift-based rewards system through Nift

The news: Fiserv will launch its own stablecoin, FIUSD, by end of year to complement its existing banking and payments infrastructure. Our take: Reporting BNPL data to the credit bureaus would be a solid step toward combatting BNPL鈥檚 鈥減hantom debt鈥� criticism.

Partnerships and AI adoption powered the BNPL company鈥檚 lead over competitors.

The BNPL provider pushed the Affirm Card and notched new partnerships to stay ahead of competition.

In-store payments provide a new growth avenue for BNPL providers facing slower industrywide volume growth

Despite being a leader in AI use, the BNPL provider said leaning on AI for customer service lowered support quality

The BNPL provider is taking the lead on credit reporting as the industry waits for regulatory clarity

The BNPL provider is racking up partners in a major expansion push before its now-delayed IPO

Gen Zers are driving growth in both emerging and traditional payment methods as they embrace cards, BNPL, and digital wallets. Payment providers must now align their offerings with Gen Z鈥檚 preferences as the cohort鈥檚 spending power grows.