US & Overseas Market Outlook Report, Buy Now, Pay Later 2021-2025 –

DUBLIN – (COMMERCIAL THREAD)–The “Buy Now, Pay Later: Point-of-Sale Installment Loans in the US Market and International Perspectives, 2nd Edition” report was added to offer.

Buy Now, Pay Later (BNPL) loan volumes were increasing even before the global COVID-19 pandemic, with consumers shifting their financing preferences from revolving credit products such as credit cards to installment loan products.

After the onset of the pandemic and through subsequent waves of varying variants and infection rates, consumers both paid off their credit card balances and rapidly increased their use of debit cards and BNPL installment loans. . Amid an unstable economic recovery and uncertain health outcomes, consumers have researched and adopted budgeting and payment methods that align with these trends and give them greater control over their household finances.

Consumer credit is a multi-billion dollar industry in the United States, with the volume of BNPL installment loans (also known as point-of-sale installment loans or POS) being grouped under the category of “personal loans”.

This report separates BNPL’s installment loans from their parent category, providing estimates of the size of the US market for 2015 versus 2020, as well as year-to-year projections through to 2025. These projections have been developed in the context of rapid changes in consumer payment preferences during the pandemic, as well as macroeconomic and demographic trends for consumers in the United States.

While focusing on the BNPL installment loan industry in the United States, this report also covers the broader context of BNPL financing in countries in Asia, Europe and Latin America.

This report reviews the current borrowing behaviors of US consumers; strategic positioning initiatives of financial technology companies (fintechs), banks, card issuers and card networks; and the cross-border deployment of these initiatives across product categories and business platforms.

It also analyzes each of the major business models in the industry, examining the potential viability of each model as more players join in and bring their own marketing messages, merchant partnerships, and revenue models.

The report provides a comprehensive industry background for BNPL Installment Loans, an assessment of the strategies and success of existing and new participants in the industry, and a detailed analysis of the opportunities and challenges for those entering or competing in the industry. BNPL.

US Dynamics: traditional players

  • US banks and card issuers join BNPL Finance Market

  • American banks

  • Bank: Citizens Financial

  • Consortium: GreenSky Financial

  • Card issuer: Citibank

  • Bank: Goldman Sachs

  • Card Issuer: JPMorgan Chase

  • Financial company: Synchrony Financial

  • BNPL Finance’s card networks enter the market

  • Industry Context

  • Visa

  • American Express

  • MasterCard

US Dynamics: Fintechs

  • International fintechs drive innovation in the United States BNPL Finance

  • Fintechs targeting consumers with / without credit

  • Klarna

  • Largest BNPL Supplier With A Valuation Of $ 45.6 Billion

  • Klarna’s market performance prompts investors to give her millions of dollars

  • Klarna’s American accent

  • Klarna Vibe loyalty program

  • Klarna offers consumers three BNPL financing products

  • Klarna reports that her product increases average order value by 68%

  • In-app browser allows buyers to use Klarna anywhere on the internet

  • PayPal Credit

  • Since 2008, PayPal Credit has generated $ 50 billion in BNPL installment loans

  • Entering new regional markets with BNPL Acquisitions

  • Marketing to merchants and PayPal users

  • PayPal Credit introduces Pay in 4 to its Pay Later list

  • Pay in 4 was PayPal’s response to competitors and their demands from merchants

  • To affirm

  • Since 2016, Affirm has processed $ 15.0 billion for merchants

  • Investor Pop took its IPO in January 2021 to $ 23.2 billion

  • Affirm began as a payment option for at-risk consumers

  • Most offers are through e-commerce and an in-app purchase browser

  • Walmart offers Affirm BNPL loans in its 4,000 U.S. stores

  • Amazon, Peloton and Affirm

  • Affirm’s AI allows it to approve 126% more borrowers than Synchrony

  • Affirm at a strategic crossroads to achieve profitability

  • After payment

  • Afterpay offers a single product without interest

  • Its Afterpay store “mall” is available online or through its app.

  • Virtual card introduces Afterpay to payment options for major retailers

  • Afterpay shows solid growth in UK

  • Acquisition by Square for $ 29 billion

  • Amazon

  • Amazon BNPL Options

  • Loan details

  • Sezzle

  • Sezzle established key partnerships in 2020 and 2021

  • Sezzle’s Spiel: 4 interest-free payments over 6 weeks

  • In 2 years, Sezzle has grown from 1 million customers to 2.9 million customers

  • Sezzle contracts with Target and launches loyalty program

  • New BNPL features

  • BNPL product extension with Ally Financial for purchases up to $ 40,000

  • Dazzling growth

  • Sezzle’s IPO captures Australian investor enthusiasm for BNPL Finance

Dynamics of international markets

  • Global snapshot

  • Overview

  • Latin America

  • China

  • Western Europe

  • National debt and payment preferences

  • BNPL grows twice as fast as credit cards

  • BNPL’s growth is fueled by consumers’ desire for payment choices

  • Having payment options informs merchant choice of UK consumers

  • Europeans use a wide range of payment options for e-commerce

  • Finally, Germany switches to credit cards and BNPL Finance

  • Benefits of e-commerce and highly developed BNPL technology

  • Brazil

  • The largest market in Latin America

  • Robust installment loan ecosystem

  • Growth of financial services to consumers

  • More internet and more smartphones

  • Consumers used to leave a stack of post-dated checks as installments

  • Brazilian retailers announced installment price, not full retail price

  • Installment payments used in 80% of online purchases in Brazil

  • In other markets, Fintechs collect payments from buyers

  • The biggest categories of e-commerce are electronics and travel

  • Intimidating import tariff law to reduce e-commerce volumes

  • Mexico

  • Mexico’s e-commerce value more than doubled between 2014 and 2019

  • Debit cards are not allowed for digital commerce

  • Nation’s Largest Online Store Lets Consumers Buy Online and Pay In-Store Cash

  • Market solution still needed to pay cash for e-commerce

  • The high level of mobile commerce in China

  • Stricter regulations falsify China’s BNPL

  • China and the countries in which it invests are the most advanced financial markets BNPL

  • Tencent

  • Ali Baba

  • Leveraging Chinese tourists to enter new markets

  • Trade wars thwart plans

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