• Buy Now Pay Later (BNPL) players Affirm, Afterpay and Zip announced new features and investments.
  • BNPL’s offerings are immensely popular, but regulatory and profitability challenges remain pervasive.
  • Insider Intelligence publishes hundreds of insights, charts, and forecasts about the payments and commerce industry. Learn more about becoming a customer.

Major Buy Now, Pay Later (BNPL) players launched new features and one invested in an overseas opportunity.

consumers who have used BNPL


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Affirm introduced Adaptive Checkout to give consumers greater payment flexibility.

  • The feature shows customers a side-by-side comparison of BNPL options (biweekly or monthly payments) for each transaction at checkout, according to a press release.
  • Adaptive Checkout increases the chances of customers using Affirm’s BNPL solution by offering greater payment flexibility so customers can choose a plan that suits their needs.
  • Fifty-two percent of consumers in Australia, the UK, and the US said convenience and flexibility were BNPL’s top benefits. by Marqeta.

The Money by Afterpay app will allow customers to retroactively convert a payment into installments.

  • the soon to launch The lifestyle and money management app includes a savings account and a physical debit card and helps users manage their BNPL payments.
  • The new feature, dubbed Retro, allows users to convert any transaction made within 72 hours with the Money by Afterpay debit card into installments, according to a press release. Depending on their spending limit, customers can convert up to $ 200 in transactions with Retro.
  • Retro can make Money by Afterpay a more attractive card product, helping to attract more users to the application and the card. And it gives customers more opportunities to spend with Afterpay, which can increase volume. The feature also updates Afterpay with issuers like Chase and Monzo, which also offer retroactive BNPL features.

Zip acquired a $ 50 million minority stake in India-based BNPL’s startup ZestMoney.

  • The startup offers its more than 11 million users short- and long-term installment loans and works with more than 10,000 online merchants in India, including Amazon and Flipkart, according to a press release.
  • The strategic investment gives Zip a foothold in the Indian market, a region that said it was untapped by the major BNPL players. Also supports Zip’s global expansion strategy and likely opens up new revenue generating opportunities in India, which is experiencing strong e-commerce increase.BNPL offerings have become immensely popular, but the profitability and regulatory challenges are growing pronounced as the competition heats up.

47% of US and British consumers and 60% of Australian consumers have used a BNPL solution, according to Marqeta. But while these solutions have seen an increase in adoption in the last year, profitability remains tricky: The average profit margin in the BNPL industry is -2.6%, according to IBISWorld Senior Industry Analyst Yin Yeoh. AND upcoming regulations along with the recent increase in BNPL participants it could make it difficult for existing players to retain market share and increase profitability.

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