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Recession could push debt-wary credit card users to payment methods they view as less risky, like debit cards; buy now, pay later (BNPL) loans; and cash. Issuers can emphasize payment flexibility, affordable financing, and no-fee balance transfers to risk-worthy cardholders. Tailor rewards toward consumer staples.

Additional features like buy now, pay later (BNPL) and geographic expansion will help sustain Apple鈥檚 growth. Google:. Google relaunched its Wallet app across most markets鈥攊ncluding South Africa, the wallet鈥檚 first move on the continent鈥攖o simplify its global offering and encourage engagement. It also expanded into new areas like cryptocurrency payments through a tie-up with Coinbase.

Premium travel credit cards need payment flexibility to compete against buy now, pay later (BNPL). Large-ticket travel purchases are ideal BNPL candidates, driving BNPL fintechs to capture slices of US traveler spending. Already, Uplift has forged a partnership with Southwest Airlines, and Affirm has teamed up with online vacation marketplace Vrbo and travel booking platform Agoda.

More than 35 million Gen Zers will use buy now, pay later (BNPL) by 2026. Banks that partner with BNPL companies can get an in with this generation. But Gen Z also uses traditional credit. Gen Zers have an average of $2,589 in credit card debt. This is not quite on par with millennials, but it provides a runway for banks to grow their portfolios with this generation.

Buy now, pay later (BNPL) providers are taking steep valuation cuts. Both public and private BNPL providers are taking hits. Klarna raised its latest round at a $6.7 billion valuation, an 85% drop from last year鈥檚 high. Affirm鈥檚 stock price had plunged 76% year to date by mid-July. The crypto winter is putting the freeze on startup growth.

BNPL volume from Afterpay jumped 25% to nearly $7 billion. Square gross payment volume (GPV) rose 6% to $50.46 billion鈥攁nd rocketed 23% outside of the US. Nearly one-quarter of Square鈥檚 revenues came from banking services during Q1. Block also disclosed that the $220 million Bitcoin investment it made in 2020 and 2021 has ballooned 160% to $573 million.

That may mean PayPal pivots to focus on areas where it鈥檚 generating easy growth, like buy now, pay later (BNPL) and Braintree, while reinvesting money back into core areas. If this strategy is successful, it could prompt PayPal to offload other non-core business units.

New payment methods like buy now, pay later (BNPL) and account-to-account (A2A) payments are cheaper for sellers. Besides increasingly accepting these methods, sellers may promote them more heavily to drive customer usage. Outside of the US, domestic payment networks like India鈥檚 Unified Payments Interface are emerging as card alternatives.

笔补测笔补濒鈥檚 buy now, pay later (BNPL) program spurred strong checkout volume and TPV increases. It鈥檚 offered nearly 200 million loans to almost 30 million customers globally since launching in 2020. The program is available at about 300,000 merchants worldwide. Transaction volume was mostly driven by Venmo and Braintree, 笔补测笔补濒鈥檚 payment gateway geared toward larger merchants.

But a dynamic experience would know when to offer customers a BNPL option or an application for a credit card. Consistency across all channels is also key to a successful payments strategy, Crisologo added. For instance, if a BNPL option is available online, it should also be available in store.

It could also extend to buy now, pay later installment and financing options for their customers鈥攁nd more. Such additions can further strengthen merchant engagement and open more revenue streams. 3 leading digital commerce platforms process merchant payments in-house. Shopify has transformed its digital commerce platform into a payments juggernaut.

Gen Zers have also taken to Buy Now Pay Later (BNPL), which makes emotional spending even easier. These young shoppers rely on embedded finance over three times more than baby boomers. But Gen Z wants to be more responsible: This self-aware generation knows their habits are detrimental to their financial wellness, and they want to change.

Cash App Card and its buy now, pay later (BNPL) platform contributed to that growth. In March, Cash App Card had 20 million monthly active users, up 34% YoY. Average spend per user also increased. Block has focused on growing the Cash App ecosystem through products like its debit card and Cash App savings.

The tool can help Klarna stand out from BNPL competitors, potentially leading to higher market share in the long run as BNPL spending grows: US BNPL payment volume is expected to increase 25.5% year over year in 2023, per Insider Intelligence forecasts.

Shoppers get a little help from BNPL. The stat: On Cyber Monday, shoppers used buy now, pay later (BNPL) services to pay for $940 million worth of online purchases, the biggest day ever for BNPL, per Adobe Analytics. What it means: BNPL is here to stay, particularly among millennials and Gen Zers, who will represent 60 million BNPL users next year, per our June 2023 forecast.

A slew of new entrants in the BNPL space has made it harder for Klarna and Sezzle to grab more market share. PayPal, Visa, and Mastercard all ramped up their BNPL programs in 2022. BNPL providers across the board aren鈥檛 seeing the same volume growth they did in 2020鈥攚hich can be partly attributed to normalizing ecommerce growth. What鈥檚 next?

Younger consumers are propping up nascent BNPL growth. The opportunity: BNPL represented 3% of ecommerce payment value in 2021, or C$3.02 billion ($2.32 billion). As of 2022, 3% of Canada consumers had used BNPL in the past 30 days. That鈥檚 less than one-third of US users and one-sixth of UK users.

For several years in a row, the four largest US P&C insurers have cut ad spending, leading to a steady decline in TV ad impressions.

While buy now, pay later (BNPL) is its mainstay solution, Klarna wants to be more than just a BNPL provider; it鈥檚 building out customer tools through the Klarna app. Some of Klarna鈥檚 most popular app features include its search engine, money management features, and creator platform, all of which help drive engagement and customer loyalty.

Expand buy now, pay later (BNPL) to physical stores. Cash-strapped consumers will look for ways to stretch their dollars during the holidays. These shoppers will be ready to use BNPL at brick-and-mortar locations, meaning retailers can capture incremental purchases by providing in-store payment alternatives.

The shift: BNPL innovation drives its payment share forward. BNPL blends the flexibility of credit, short repayment terms, and app-based shopping into a simple, easy user experience. It will account for 12.1% of ecommerce payments by 2025, according to FIS. The demographics: Older consumers are supplementing BNPL growth.

鈥淎 lot of Gen Zers are jumping onto buy now, pay later [BNPL] because they either don鈥檛 want to embrace traditional credit cards or don鈥檛 have the credit yet,鈥� said Feger, who expects the service to become even more popular for holiday shopping.

Buy now, pay later gains steam. Over the holidays, buy now, pay later (BNPL) use picked up as consumers looked for alternative ways to fund their shopping. This year, BNPL will continue gaining users and growing payment value by 25.5% to reach $94.87 billion. By 2026, nearly 40% of internet users will have used a BNPL solution.

The company expects revenue to reach $27.85 billion this year, up from $25.4 billion in 2021. 22 million: The number of consumers who have used 笔补测笔补濒鈥檚 buy now, pay later (BNPL) services since its launch in June, making it the most used BNPL service in the US with over half of consumers as users, per LendingTree. $282.44 billion: Our forecast for Venmo鈥檚 US mobile peer-to-peer (P2P) transaction value in

Younger consumers will lean on BNPL to finance their holiday purchases. Gen Zers are more likely than other demographics to finance holiday gifts with buy now, pay later (BNPL). 蘑菇AV 39% of Gen Zers will use BNPL over the holidays, as opposed to just 9% of baby boomers and 21% of Gen X consumers, per i2c and PYMNTS.