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Its growth and cost-cutting measures brought the BNPL fintech its second straight profitable quarter. And it鈥檚 projecting full-year profitability for FY 2024

While BNPL losses remain low, consumers may be overextending themselves, making it harder for consumers to pay off their growing credit card balances

The tie-up will bring the BNPL provider to a bevy of merchants鈥� checkout pages鈥攚hether they like it or not

The key stat: 54% of US consumers who took on debt to pay for holiday gifts are at least somewhat concerned about repaying it, per data from CivicScience. 27% of buy now, pay later (BNPL) users concerned about paying debt owe between $100 and $500, 10% owe between $500 and $1,000, and 19% owe $1,000 or more.

More than a third (37%) of US Gen Zers have used a BNPL service to make at least one recent purchase, per September 2023 Morning Consult data. 27% of Gen Zers would forgo a purchase if BNPL was not an option, according to PYMNTS.com and i2c. This year, almost half (48.1%) of US Gen Z digital buyers will be BNPL users, accounting for 21.9 million people, per our June 2023 forecast.

The Swedish player launched as a buy now, pay later (BNPL) company in 2005 and pivoted to being a broader shopping app in 2021. The app lets consumers shop by product category or by brand and pay in installments at any retailer. Klarna also offers a browser extension that applies discounts to shoppers鈥� carts in seconds.

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础尘补锄辞苍鈥檚 BNPL partners鈥擜ffirm and Citi鈥攍ikely benefited from growing consumer demand for the tool

And niche BNPL newcomers are also trying to sweep up market share as BNPL grows: The number of US BNPL users is expected to hit 79 million in 2022, up from 50.6 million last year, per Insider Intelligence forecasts. Consumers now have a much wider array of BNPL options to choose from than they did before the pandemic鈥攎aking it harder for incumbents to stand out.

BNPL. As BNPL is exploding in popularity, PayPal鈥檚 BNPL program (which includes Pay in 4 and Pay Monthly) has also taken off. US BNPL payment value will reach $75.60 billion in 2022, skyrocketing 77.3% YoY, according to our forecast, and PayPal is capturing some of this growth. PayPal鈥檚 BNPL volume shot up 226% YoY in Q2 2022 to hit $4.9 billion.

The season (which we define as November and December) will account for 18.4% of total US retail sales this year, according to our forecast. And this share goes up even more for ecommerce sales, representing 22.3% of full-year sales.

Orders made via buy now, pay later (BNPL) increased 85% over Cyber Five, according to Adobe Analytics. 鈥淚t鈥檚 a win-win for retailers鈥� as it increases basket size and boosts conversion rates, our analyst Grace Broadbent said on the 鈥淏ehind the Numbers: Reimagining Retail鈥� podcast.

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.

Last year, we predicted India鈥檚 CBDC plans would materialize in 2022 and that the CFPB would hone in on BNPL players.

The travel booking site partnered with Stripe and Klarna to offer BNPL and smoother bank transfers.

The consumer watchdog plans to regulate BNPL providers similarly to credit card issuers following a nearly yearlong investigation.

The news: Klarna expanded its distribution partnership with Stripe, making the buy now, pay later (BNPL) option available to merchants in 26 countries, per CNBC. Stripe merchants will be able to A/B test the impact Klarna has on their conversion rates. As part of the new deal, Stripe will get a share of the fees that Klarna makes from each transaction.

If you want to learn how to get insights like these delivered to your inbox every day, and get access to our data-driven forecasts, reports, and industry benchmarks, schedule a demo with our sales team.

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 PayPal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

Issuers must provide payment flexibility to compete against buy now, pay later (BNPL) and shifting consumer expectations. US BNPL payment value will see a compound annual growth rate (CAGR) of 14.8% from 2023 to 2027, when it will reach $124.82 billion, per our forecast. This pales in comparison to the $3.466 trillion in credit card spending at food service and retail in 2023.

This year, we forecast Cyber Five to make up 15.7% of holiday ecommerce sales, bringing in a total of $42.66 billion in the US. US holiday retail and ecommerce sales will total $1.372 trillion this year, according to our February 2024 forecast. Use this chart to:. Develop seasonal merchandising and marketing strategies that span October through December.

The card network is said to have started automatically enrolling merchants in its BNPL program. But some providers have financial concerns and have opted out.

This will help extend Affirm鈥檚 reach and bring in new customers, which can boost volume growth: We predict Affirm鈥檚 US payment value will reach $20.54 billion in 2023, up 22.5% YoY, per our forecast. Digging deeper: For a closer look at key trends we鈥檙e watching in the BNPL industry, read our 鈥淪tate of Payment Methods鈥� report.