Will Buy Now, Pay Later Services Continue To Grow? Retail Experts Weigh In
Jul 15, 2021
The pandemic brought about an e-commerce retail boom, and with it has also come an explosion in the popularity of Buy Now, Pay Later (BNPL) services. Last month, Swedish fintech heavyweight Klarna cemented its position as arguably the greatest giant in the space by confirming a new equity funding of just over £453 million – giving the 16-year-old company a value of around £32.33 billion, and making the BNPL business the highest-valued private fintech corporation in Europe. With the rise of BNPL services intrinsically linked to online shopping, will their popularity continue as the world opens up, and shoppers return to bricks and mortar retail stores? Read more at Forbes.
I think the best one in this space is Splitit, as they work off of a customer’s existing (unused) credit rather than requiring the customer to open a new line of credit. In this way, the customer stays on the retailer’s website and is not migrated off to complete an application. Less friction. Fewer abandoned baskets.