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US mobile wallet users prefer PayPal, especially for online purchases. Record-breaking $1 trillion credit card debt isn鈥檛 cause for concern just yet. Soaring BNPL use during Prime Day reflects increasing demand for the payment method.

Moving into the sector also helps Square keep up with PayPal, which already offers credit card products for merchants. It also complements Amex鈥檚 small-business tools. The firm has been trying to better serve small businesses, which accounted for 27% of its total network volume in Q3. It rolled out small-business checking accounts last year and a cross-border payments solution over the summer.

It can also help Block increase online payments revenues and compete more aggressively with PayPal, which has a strong checkout presence. US P2P payments volume is expected to increase 38.5% year over year (YoY) in 2022 and hit $1.091 trillion, per Insider Intelligence forecasts. But by 2026, US P2P payments volume gains will slow to 13.4% YoY.

We forecast that Klarna, Afterpay, and Affirm count close to 70 million BNPL users in the US, and newer entries from Block and PayPal as well as card-linked installment offerings like Visa or Mastercard Installments will only intensify this competition. And Apple Pay Later just landed on iPhones, which will be a major shake-up in the BNPL landscape due to Apple Pay鈥檚 extensive market penetration.

The Consumer Financial Protection Bureau (CFPB) opened an inquiry into Affirm, Klarna, Afterpay, PayPal, and Zip in December to determine the risks and benefits of BNPL products. And last month, it opened an inquiry into Apple鈥檚 BNPL offering. New guidelines from the CFPB could lead to compliance costs and reworked products. Fears of a recession are also disturbing the industry.

Other banks are expected to follow in order to further entrench habits on their platforms鈥攁nd cut into a key PayPal use case. Business payments. Interac is already leaning into business payments for use cases like personal services: This past April, almost a third of dollars sent via e-Transfer involved a business, according to The Globe and Mail, and acceptance is ramping up.

For your consideration: A large majority (81%) of US digital shoppers review return policies before making a purchase with a merchant for the first time, per an August 2023 Happy Returns report commissioned by PayPal.

A branded wallet might also create some tension with card partners, most notably PayPal, which has invested heavily in its own wallet offering. And retail partners may not be on board with the idea, since it could threaten brand marketing. This article originally appeared in Insider Intelligence's Payments Innovation Briefing鈥攁 daily recap of top stories reshaping the payments industry.

The move can help Block compete more aggressively with PayPal, whose Venmo already lets users make payments at popular retailers like Amazon. It may also help increase Cash App adoption: We expect 47.8 million US adults will use Cash App by the end of 2022, per our forecasts. It was noticeably quieter about cryptocurrencies in the second half of 2022.

More Chart of the Day:. 8/16 - Digital out-of-home climbs. 8/15 - The social generation. 8/14 - Everyone tries on AI. 8/11 - In search of ads. 8/10 - PayPal leads the P2P pack.

Venmo, Cash App, and PayPal could benefit from any shift in posturing toward Zelle from smaller banks because of their wide reach. Chuck. Alloy Labs Alliance鈥檚 open network for community banks that enables P2P payments at a lower fee structure鈥攁nd a lower transaction ceiling鈥攃ould grow its uptake.

Customers can pay with debit or credit cards, PayPal, Klarna, or Super Payments鈥� proprietary payment method鈥攚hich carries no fees and offers instant cash back. The cash back and commission fees depend on the payment method customers select. Remittance startup Pomelo raised $20 million in seed funding, per TechCrunch.

As the name suggests, one-click checkout allows customers to hit just one button to complete their purchase; it鈥檚 offered by retailers including Shopify and Amazon and payment providers like Revolut and PayPal.

Article: Paypal leans into Venmo for payments prowess. Article: Consumers鈥� trust in digital banking is shifting from their primary financial institution. Read yesterday鈥檚 Chart of the Day here. Methodology: Data is from an August 2022 Morning Consult report titled "The State of Consumer Banking & Payments H2 2022." 4,400 US adults were surveyed online monthly during H1 2022.

And nontraditional providers are coming for incumbents: When we asked consumers what provider they鈥檇 most trust for banking services, PayPal was the top-cited answer. Savvy incumbents can act on a moment of extreme neobank uncertainty to shore up their trust advantage.

For the first time, consumers ranked PayPal above their current bank or credit union as their most trusted provider for banking services. Factors influencing trust: The benchmark report asked for respondents鈥� input on five major components to building digital trust. Here鈥檚 what the participants value, what they feel is lacking, and what鈥檚 on their minds. Security.

Maybe it's a company like PayPal I think plays an interesting place where they could fulfill that role, for example, or Venmo, which is PayPal. But you see where I'm going. Tiffani Montez:. All answers are PayPal. Rob Rubin:. Yeah. Tyler Brown:. It is. If you look at our trust survey. Tiffani Montez:. Very true. Rob Rubin:. Yeah.

PayPal processed almost $5 billion in BNPL volume in the third quarter, a 157% rise year over year. More than 25 million customers use its BNPL product, which is offered by over 280,000 merchants on their product pages. Block鈥檚 BNPL offering, Afterpay, grew 120% over the Cyber Five compared to pre-holiday levels.

The raise: UAE-based BNPL provider Tabby bagged $58 million in Series C funding at a $660 million valuation from investors including PayPal, according to a company statement. The fintech has earmarked the funds to expand its consumer financial services product line and said the raise makes it one of the most valuable startups in the region.

Payfacs like Block, PayPal, and Stripe onboard a merchant as a subaccount under their master account. This simplifies onboarding and lets a payfac manage multiple relationships and systems on the merchant鈥檚 behalf. These providers also set up merchants鈥� electronic payment and processing services, underwrite their accounts, and process their transactions.

I mean the ecosystem and this, I would look a little more generally out there, at not just Apple, but you have Venmo, you have PayPal, you have Google, you have Cash App.

Apps such as PayPal and Klarna have added commerce offerings. PayPal, for instance, added a shopping tab in its app that offers deals and rewards and connects to Honey, a coupon app it bought in 2019. Delivery companies are also expanding commerce options. Instacart, DoorDash, and Uber have all added commerce options to their apps.

Beauty is a top category for the 43% of UK consumers buying via social media, according to a November 2022 report by PayPal. TikTok, a relatively new entrant to the UK beauty market, is already the tenth-largest ecommerce merchant in the category, per NielsenIQ. Amazon鈥檚 domination of UK ecommerce sales will continue.

But leading wallets like Apple Pay, PayPal, and Chinese super app Alipay are winning over consumers through education on how they work and the limited amount of data they use, as well as through incentives like loyalty bonuses and mobile ID initiatives. The demographics: Younger and higher-income Canadians are driving mobile wallet growth.