Australia Buy Now Pay Later Business and Investment Opportunities

Driven by the pandemic, the buy now, pay later (BNPL) payment method has gained immense popularity, especially among young customers. However, many companies provide BNPL options to young customers based on the New-To-Credit (NTC) option without a detailed background check. Moreover, there is a lack of awareness among young customers regarding the consequences of non-payments. Therefore, non-payment of loans negatively impacts companies’ profitability and increases the chance of consumers falling into a debt trap. According to  PayNXT360 ’s global survey, the revenue missed fee in the BNPL market recorded a growth of nearly 81% (year on year) in 2020, which is a witness to an increased number of non-payments. Thereby, intervention from regulatory authorities has been witnessed in the BNPL industry to ensure strict credit checks by the BNPL providers to safeguard the population from any debt trap. Klarna introduced a new tool to implement strong credit checks for clients In October ...

The growing and increasingly competitive BNPL space has seen a number of BNPL platforms joined forces with retailers and merchant partners around the world to expand their operations. The popularity of the installment financing options has grown so much recently that even Consumer Banks and airlines in the United States have entered into a strategic partnership with BNPL players to take on the segment together. US Consumer Bank teams with BNPL platform Nearly 33% of the consumers in the United States are using buy now, pay later service. As consumers become more comfortable with the flexible payment options and transparency, these numbers are expected to rise even more going forward. To ripe benefits of the growing market, Barclays entered into a strategic partnership with BNPL platform Amount to provide its merchants with point-of-sale (POS) installment financing options. Using Amount’s financial platform, Barclays is entering into the BNPL segment. These point-of-sale installment fin...

  India-based merchant commerce solution provider Pine Labs has acquired its investee Malaysian-based payments and deal discovery platform Fave in a deal valued at US$45 million. This move is expected to enable the company get into the consumer payments segment. With this multi-million cash and stock deal, Fave is planning to launch its payments app in India later this year. This strategic partnership will thus allow Pine Labs to expand its services while providing consumers with the ability to use the payments platform across half a million retail points and merchants. Pine Labs strategically acquired Fave to get into the highly competitive consumer payments space in India. The space is currently dominated by PhonePe, Paytm, and Google Pay. Fave has already started its process with the National Payment Corporation of India (NPCI) to get their UPI certification for the country-wide launch of its payment app. Along with the consumer payment segment, Pine Labs is also looking at e-co...

In recent years, the super apps market in Africa has seen significant growth. Despite the fact that the market is still in the nascent stage, the large growth potentiality is attracting investments. According to   PayNXT360 , the market will attract more product launches in the short to medium term. Unlike Asia, where supper apps are already available in large numbers, the segment is slowly proliferating in Africa lately. Given the African context, the super app model is also one of those which makes sense for mobile wallet providers. For instance, Africa draws several parallels to Asia. The most significant of which include increasing population, increased mobile adoption, fastest-growing consumer markets, and a mobile-first approach to innovation. Similar to Asia, the population in Africa is also young and growing fast, most of which are willing to adopt mobile-based technologies. Moreover, more than 60% of the sub-Saharan Africans fall under the unbanked category. For people wit...

  The growing and increasingly competitive BNPL space has seen a number of BNPL platforms joined forces with retailers and merchant partners worldwide to expand their operations. The popularity of the installment financing options has grown so much recently that even Consumer Banks and airlines in the United States have entered into a strategic partnership with BNPL players to take on the segment together.   US Consumer Bank teams with BNPL platform According to PayNXT360’s Q4 2020 BNPL Survey, BNPL payment in the country is expected to grow by 39.7% on annual basis to reach US$ 35314.9 million in 2021. Medium to long term growth story of BNPL industry in United States remains strong. The BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 13.0% during 2021-2028. The BNPL Gross Merchandise Value in the country will increase from US$ 25272.2 million in 2020 to reach US$ 83248.4 million by 2028. Nearly 35% of the consumers in the...

  BNPL outlook In Japan, cash has been the king and remains the most favored payment method. However, over the last few years, the government has made several inroads to transform Japan into a more cashless society by investing significantly in the digital payments space. From cashless rebate programs to the introduction of QR code payment systems, the government encourages consumers to use digital payments.   According to PayNXT360’s Q4 2020 BNPL Survey, BNPL payment in the country is expected to grow by 134.0% on annual basis to reach US$ 10009.5 million in 2021.Medium to long term growth story of BNPL industry in Japan remains strong. The BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 38.1% during 2021-2028. The BNPL Gross Merchandise Value in the country will increase from US$ 4277.8 million in 2020 to reach US$ 95674.6 million by 2028. This digital revolution in the payment sector has also helped the country's new and upco...

  Afterpay Day, a bi-annual shopping event from Afterpay, has turned out to be one of the key growth drivers for the company. First launched in March 2019, Afterpay Day has continued to provide great results for the BNPL brand, both in terms of new customer and merchant signups. For instance, the recently concluded 2021 Afterpay Day (March 25 – March 28) resulted in a 35% growth in new customers for the company. The fifth bi-annual Afterpay Day sale was also the first one ever to include brick-and-mortar shopping. The customers were able to participate in the sale day via in-store purchases using the Afterpay platform. Traffic to brand partners also experienced strong growth in the sale. Overall, the BNPL brand was able to send nearly six million referrals from its shop directory to the global merchant partners. A win-win situation for every party involved Several retailers, both online and in-stores, participated in the fifth bi-annual Afterpay Day sale. More than 3,000 retail par...