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Expanding into healthcare payments can help invigorate growth for BNPL players as user growth slows

BNPL providers approved 79% of applications in 2022 thanks to counteroffers for subprime borrowers

It鈥檚 a large volume opportunity for the BNPL player and helps Klarna compete with. It can also help keep users loyal to Apple as its NFC tech opens up

Despite delays, Apple can benefit from its extensive user base and merchant acceptance to build BNPL success.

This is especially important for BNPL fintechs as they search for long-term profitability in a historically low-margin business. Dig deeper: Check out our BNPL forecast for more information on where we think BNPL growth is headed in the US. This article originally appeared in Insider Intelligence's Payments Innovation Briefing鈥攁 three-times-weekly recap of top stories reshaping the payments industry.

After touting a recession-proof business model, the BNPL firm slashed 19% of its workforce and will restructure to the tune of $39M.

The brands built on their previous BNPL partnerships, bringing Affirm鈥檚 product to Amazon Pay to grow the buy button鈥檚 reach

Read on: Check out our US Buy Now, Pay Later Forecast 2022 report to learn about what鈥檚 driving growth in the sector. This article originally appeared in Insider Intelligence's Payments Innovation Briefing鈥攁 daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily. Are you a client? Click here to subscribe.

Some 40 million people will use Klarna in the US next year, marking a 15.6% increase for the buy now, pay later (BNPL) service. Over the coming years, growth will slip into the single digits, a far cry from the 115.0% surge back in 2020.

BNPL providers will race to adopt the technology. Afterpay and Klarna will do so by the end of the year. Both need to penetrate in-store sales, are building out debit card programs to do so, and would benefit from the extra interchange. This will help drive BNPL transaction value. Click here to view our full forecast for US BNPL payment value.

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

Related content: Check out our US Buy Now, Pay Later Forecast 2022 spotlight report to learn about the factors driving growth in the sector. This article originally appeared in Insider Intelligence's Payments Innovation Briefing鈥攁 daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily. Are you a client?

Related content: Check out our US Buy Now, Pay Later Forecast 2022 to learn about the factors that will affect growth in the space this year. This article originally appeared in Insider Intelligence's Payments Innovation Briefing鈥攁 daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily. Are you a client?

As the cost of living rises, the range of different industries accepting BNPL is diversifying.

Click here to view our full forecast for US BNPL service user share, by age. What should FIs do next? Consider offering BNPL solutions. Almost half of credit unions say BNPL is not in their near-term plans, per January 2024 data from PYMNTS Intelligence. But as demand grows, it鈥檚 worth evaluating the option.

However, Gen Zers are the second-most likely to consider BNPL essential for the holiday season (41%), right behind millennial parents (42%). Gen Z consumers and millennial consumers will make up 64.9% of total BNPL users in the US this year, with 24.6 million and 31.6 million users, respectively, per our forecast. US BNPL payment value will rise 20.8% to reach $94.29 billion this year.

And BNPL is becoming a popular financing alternative: 4 in 10 US digital buyers will use BNPL at least once in 2025, per our forecasts. The Upgrade Financing feature should also prove popular among Apple fans who continually want the latest and greatest Apple products. Apple offers a similar upgrade program for the iPhone.