At the time of this writing, Affirm shares are down 15%. In part, this is due to the expectation that gross merchandise volumes will decline and that the macroeconomic environment is uncertain.

The consumer, of course, is the glue that holds everything together. And on Friday morning, US Federal Reserve Chairman Jerome Powell warned that interest rates would continue to rise to combat inflation. How that impacts consumer spending remains to be seen, but it may be why buy now, pay later (BNPL) remains a key lure for individuals and families to buy what they need, at relatively low rates ( or null) that are seen. with more traditional credit products.

The recent spate of earnings results among publicly reporting BNPL providers underscores the fact that BNPL is gaining a firm foothold around the world.


Sezzle said on your July update, published earlier this month, that underlying business sales (UMS) for July 2022 were up 9.5%, measured month-on-month at US$141.2 million. The growth was fueled by the Sezzle Premium subscription program, the company said, where there have been 64,000 active subscribers in the first 75 days.

The company also said in its statement that it is preparing to launch a convenience fee for US consumers who prefer to use a debit or credit card for 2-4 installment payments through the main pay-in-four product.

“The fee will not be applied to the first installment; consumers are still required to pay with a card. In addition, consumers will have the option to pay via ACH in 2-4 installments at no additional cost,” Sezzle said, adding that “the company hopes this initiative will encourage consumers to pay using lower-cost ACH processing, which in turn will significantly improve the drive. economics.” That convenience fee will roll out in tests toward the end of the current quarter and roll out during the fourth quarter.

In its second quarter results, Sezzle said that the active merchant count increased 19% year over year to 48,000. Active users gained 18% to 3.4 million, while repeat users accounted for more than 93% of those consumers.


As noted in this space on Thursday, Affirm transactions are up 31%, compared to an 8% growth rate a year ago, as the typical BNPL user made three transactions per customer, compared to two ago. one year. Y company statements show that GMV in the fiscal fourth quarter soared 77% to $4.4 billion. Of the 12 million transactions recorded in the quarter, 10.1 million were repeat transactions, the rest were first-time customer transactions; 85% of customers were repeat customers. Active merchants gained 13% in quarter-on-quarter growth to 234.8 million. In terms of credit quality, the provision for losses as a percentage of loans held for investment stood at 6.2% in the most recent quarter, down from 6.4% in the third quarter and up from 5.8 % in the fourth quarter of the previous year.

Post lock/pay

In its own earnings results, Block’s management said that its BNPL platform, which we acquired through the Afterpay acquisition, contributed $150 million of gross profit, split between Square and Cash App.

In the second quarter, GMV for Afterpay was $5.3 billion, up 13% from a year ago or 65% on a three-year CAGR basis. Commenting on the call, CFO Amrita Ahuja said that the loss rate at Afterpay is 1%, which is a slight improvement from the first quarter.


In a second fourthPayPal said in a commentary on its earnings call that it processed $4.9 billion in volume, up 226% year-over-year with more than 22 million consumers using BNPL. CEO Dan Schulman said that consumers had used the service more than 100 million times since its launch; there are over 200,000 merchants offering the option.

Schulman said during the call that “We don’t charge any business fees. We have no late fees for consumers. We make our money not on buy now, pay later, but on the ‘halo’ impact, which is roughly a 21% halo impact when someone uses buy now, pay later. We are not dependent on those revenue streams.”


Splitit latest quarterly update It said its $94 million merchant sales volume was up 4% year-over-year and its 12 months of active merchants of 1,300 represented a 31% year-over-year increase. The average order value, the company said, was “well over $1,000.”


We don’t have Klarna’s second quarter results yet. But first quarter results show that 150 million global active consumers represented a 60% jump year over year, with 27 million in the US representing a 65% increase. GMV for the quarter increased 19% year-over-year to $20 billion. Global retail partners gained 37% in the period to more than 400,000. Up to 93% of transactions were from returning users.

The company said in its results that 1 million consumers now use the interest-free “postpay Klarna card” for everyday purchases in Sweden, Germany and the UK, increasing purchase volumes by 78% year on year.



On: Findings from a new PYMNTS study, “The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy,” a collaboration with PayPal, analyzed responses from 9,904 consumers in Australia, Germany, the United Kingdom, and the United States. US and showed strong demand for single multifunctional super apps instead of using dozens of individual apps.


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