![\"bnpl\"](\"https://www.pymnts.com/wp-content/uploads/2025/04/2025-Pay-Later-eBook.jpg\")
PayPal says it is adding new features to its buy now, pay later (BNPL) offering.
\nTo promote this new effort, the company announced Thursday (April 10), PayPal is rolling out an ad campaign featuring comedic actor Will Ferrell, due to launch this month.
\n\u201cWill\u2019s signature humor will be on display as he embarks on a shopping journey to show all the ways you can pay with PayPal now and over time, with Pay Later available at merchants that accept PayPal,\u201d the company said in a news release.
\nAccording to the release, this follows several updates designed to ease the PayPal checkout process, such as the ability to log in with biometrics and tap-to-pay options in partnership with Mastercard that let customers earn cash back.
\nThe company is also launching what it calls its largest-ever sweepstakes with \u201cThe Great PayPal Checkout,\u201d giving $10 million away by covering the purchases of up to $100 for 1,000 PayPal users for a 100-day stretch.
\n\u201cPayments are no longer an afterthought, they\u2019re a central driver in determining how consumers shop,\u201d said Geoff Seeley, PayPal\u2019s chief marketing officer. \u201cWith millions of consumers selecting PayPal every day, we\u2019re committed to raising the bar and delivering an incredible, flexible, and rewarding experience that connects our customers to the things they want and love.\u201d
\nElsewhere in the pay-later space, recent research by PYMNTS Intelligence explores the popularity of BNPL among more affluent consumers, who use this payment method for both \u201cneed-to-have\u201d and \u201cnice-to-have\u201d purchases.
\nWhile BNPL has cultivated an image of the favored method of cash-strapped consumers, the data shows a different reality, with 61.4% of Americans making more than $100,000 a year using this method for everything from designer clothing to porcelain veneers to overseas travel.
\n\u201cWhile it\u2019s not surprising that having more disposable income correlates with more spending on non-essentials, 13.5% of higher earners are using the payment method out of necessity,\u201d PYMNTS wrote. \u201cMaybe they have maxed out their credit cards and have an expensive auto repair. Maybe the card they want to use comes with perks and rewards that they want to tap into for another purchase.\u201d
\nWhat\u2019s clear, that report added, is that the alternative credit option has become mainstream for the bulk of higher earners. For example, last December, Klarna, a major player in the BNPL sector, announced partnerships with luxury retailers Neiman Marcus and Bergdorf Goodman.
\nThe post PayPal Teams With Will Ferrell To Promote Updated Pay-Later Program appeared first on PYMNTS.com.
\n", "content_text": "PayPal says it is adding new features to its buy now, pay later (BNPL) offering.\nTo promote this new effort, the company announced Thursday (April 10), PayPal is rolling out an ad campaign featuring comedic actor Will Ferrell, due to launch this month.\n\u201cWill\u2019s signature humor will be on display as he embarks on a shopping journey to show all the ways you can pay with PayPal now and over time, with Pay Later available at merchants that accept PayPal,\u201d the company said in a news release.\nAccording to the release, this follows several updates designed to ease the PayPal checkout process, such as the ability to log in with biometrics and tap-to-pay options in partnership with Mastercard that let customers earn cash back.\nThe company is also launching what it calls its largest-ever sweepstakes with \u201cThe Great PayPal Checkout,\u201d giving $10 million away by covering the purchases of up to $100 for 1,000 PayPal users for a 100-day stretch.\n\u201cPayments are no longer an afterthought, they\u2019re a central driver in determining how consumers shop,\u201d said Geoff Seeley, PayPal\u2019s chief marketing officer. \u201cWith millions of consumers selecting PayPal every day, we\u2019re committed to raising the bar and delivering an incredible, flexible, and rewarding experience that connects our customers to the things they want and love.\u201d\nElsewhere in the pay-later space, recent research by PYMNTS Intelligence explores the popularity of BNPL among more affluent consumers, who use this payment method for both \u201cneed-to-have\u201d and \u201cnice-to-have\u201d purchases.\nWhile BNPL has cultivated an image of the favored method of cash-strapped consumers, the data shows a different reality, with 61.4% of Americans making more than $100,000 a year using this method for everything from designer clothing to porcelain veneers to overseas travel.\n\u201cWhile it\u2019s not surprising that having more disposable income correlates with more spending on non-essentials, 13.5% of higher earners are using the payment method out of necessity,\u201d PYMNTS wrote. \u201cMaybe they have maxed out their credit cards and have an expensive auto repair. Maybe the card they want to use comes with perks and rewards that they want to tap into for another purchase.\u201d\nWhat\u2019s clear, that report added, is that the alternative credit option has become mainstream for the bulk of higher earners. For example, last December, Klarna, a major player in the BNPL sector, announced partnerships with luxury retailers Neiman Marcus and Bergdorf Goodman.\nThe post PayPal Teams With Will Ferrell To Promote Updated Pay-Later Program appeared first on PYMNTS.com.", "date_published": "2025-04-10T14:41:59-04:00", "date_modified": "2025-04-10T14:41:59-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/01/PayPal.png", "tags": [ "advertising", "BNPL", "buy now pay later", "Digital Payments", "installment payments", "marketing", "News", "partnerships", "Pay Later", "Payment Methods", "PayPal", "PayPal Pay Later", "PYMNTS News", "What's Hot", "Will Ferrell" ] }, { "id": "https://www.pymnts.com/?p=2576877", "url": "https://www.pymnts.com/bnpl/2025/beyond-credit-cards-how-pay-later-momentum-is-reshaping-the-payments-ecosystem/", "title": "Beyond Credit Cards: How \u2018Pay Later\u2019 Momentum Is Reshaping the Payments Ecosystem", "content_html": "
Buy now, pay later (BNPL) isn\u2019t just a niche payment option anymore \u2014 it\u2019s rapidly becoming a permanent fixture in how consumers budget, shop and pay, according to five industry leaders whose insights preview the new eBook, \u201cReimagining Consumer Finance: The Strategic Rise of Buy Now, Pay Later.\u201d
\nMax Levchin, founder and CEO of Affirm, sees the sector evolving into a trusted, ubiquitous service \u2014 similar to how American Express became a household name in credit. In his view, consumers value BNPL\u2019s predictability and sense of control over repayment more than the ability to borrow. Affirm\u2019s model, Levchin says, focuses on clarity: \u201cOur appeal is not that it\u2019s some cool way of borrowing money,\u201d but that it eliminates late fees and hidden costs while boosting merchants\u2019 conversion rates and average transaction values.
\nEd O\u2019Donnell, CEO of Versatile Credit, highlights how economic headwinds have increased demand for pay-later financing.
\n\u201cPeople want certainty \u2014 especially in an environment where things are a bit uncertain,\u201d O\u2019Donnell notes. Versatile Credit connects merchants with multiple lenders, enabling them to offer short-term and promotional financing that appeals to cost-conscious consumers, especially younger shoppers wary of high interest rates. Larger retailers once dominated this space, but O\u2019Donnell has observed smaller merchants embracing BNPL to stay competitive and increase sales.
\nFrom a technology standpoint, Todd Pollak, chief revenue officer at Marqeta, believes modernizing outdated payment infrastructure is driving BNPL\u2019s explosive growth.
\n\u201cEven the networks and their operating procedures are based on code from 50, 60 years ago,\u201d Pollak says. Marqeta\u2019s application programming interface (API)-driven platform supports BNPL\u2019s real-time capabilities and seamless integrations with digital wallets. This reduces merchant friction, Pollak adds, which remains a key hurdle. Regulatory scrutiny is inevitable, but centralizing risk management and compliance within technology platforms can help BNPL providers stay ahead of new rules.
\nMeanwhile, Mastercard is embedding installments directly into its global network, explains Seema Chibber, the company\u2019s executive vice president for Core Payments in North America. Chibber sees BNPL as a \u201ccore capability\u201d rather than a side offering, pointing to heightened consumer demand for installment-based flexibility across all types of transactions \u2014 from eCommerce to healthcare. By partnering with both FinTechs and traditional financial institutions, Mastercard aims to provide a universal framework that makes BNPL seamless for merchants.
\n\u201cWe\u2019ve literally seen an explosion in the preference for installments,\u201d Chibber says, underlining the demand for control and transparency.
\nFinally, Nandan Sheth, CEO of Splitit, believes the market is fragmenting as consumers seek new BNPL models and banks enter the space. Splitit\u2019s approach leverages existing credit lines for interest-free installments, a strategy Sheth says fosters loyalty while preserving credit card rewards.
\nHe notes that large banks are looking to partner with orchestrators like Splitit, smoothing integration and offering a unified point-of-sale experience. Sheth also points to Klarna\u2019s success in evolving from a mere financing tool into a consumer shopping hub as a sign that BNPL\u2019s future lies in more than just splitting payments \u2014 it\u2019s about capturing and retaining consumer attention.
\nCollectively, these five perspectives paint a picture of a rapidly maturing BNPL industry poised for mainstream adoption \u2014 and they form the foundation of our new eBook, which delves deeper into how installment-based payments may shape the future of retail, banking and beyond.
\nThe post Beyond Credit Cards: How \u2018Pay Later\u2019 Momentum Is Reshaping the Payments Ecosystem appeared first on PYMNTS.com.
\n", "content_text": "Buy now, pay later (BNPL) isn\u2019t just a niche payment option anymore \u2014 it\u2019s rapidly becoming a permanent fixture in how consumers budget, shop and pay, according to five industry leaders whose insights preview the new eBook, \u201cReimagining Consumer Finance: The Strategic Rise of Buy Now, Pay Later.\u201d\nMax Levchin, founder and CEO of Affirm, sees the sector evolving into a trusted, ubiquitous service \u2014 similar to how American Express became a household name in credit. In his view, consumers value BNPL\u2019s predictability and sense of control over repayment more than the ability to borrow. Affirm\u2019s model, Levchin says, focuses on clarity: \u201cOur appeal is not that it\u2019s some cool way of borrowing money,\u201d but that it eliminates late fees and hidden costs while boosting merchants\u2019 conversion rates and average transaction values.\nEd O\u2019Donnell, CEO of Versatile Credit, highlights how economic headwinds have increased demand for pay-later financing.\n\u201cPeople want certainty \u2014 especially in an environment where things are a bit uncertain,\u201d O\u2019Donnell notes. Versatile Credit connects merchants with multiple lenders, enabling them to offer short-term and promotional financing that appeals to cost-conscious consumers, especially younger shoppers wary of high interest rates. Larger retailers once dominated this space, but O\u2019Donnell has observed smaller merchants embracing BNPL to stay competitive and increase sales.\nFrom a technology standpoint, Todd Pollak, chief revenue officer at Marqeta, believes modernizing outdated payment infrastructure is driving BNPL\u2019s explosive growth.\n\u201cEven the networks and their operating procedures are based on code from 50, 60 years ago,\u201d Pollak says. Marqeta\u2019s application programming interface (API)-driven platform supports BNPL\u2019s real-time capabilities and seamless integrations with digital wallets. This reduces merchant friction, Pollak adds, which remains a key hurdle. Regulatory scrutiny is inevitable, but centralizing risk management and compliance within technology platforms can help BNPL providers stay ahead of new rules.\nMeanwhile, Mastercard is embedding installments directly into its global network, explains Seema Chibber, the company\u2019s executive vice president for Core Payments in North America. Chibber sees BNPL as a \u201ccore capability\u201d rather than a side offering, pointing to heightened consumer demand for installment-based flexibility across all types of transactions \u2014 from eCommerce to healthcare. By partnering with both FinTechs and traditional financial institutions, Mastercard aims to provide a universal framework that makes BNPL seamless for merchants.\n\u201cWe\u2019ve literally seen an explosion in the preference for installments,\u201d Chibber says, underlining the demand for control and transparency.\nFinally, Nandan Sheth, CEO of Splitit, believes the market is fragmenting as consumers seek new BNPL models and banks enter the space. Splitit\u2019s approach leverages existing credit lines for interest-free installments, a strategy Sheth says fosters loyalty while preserving credit card rewards.\nHe notes that large banks are looking to partner with orchestrators like Splitit, smoothing integration and offering a unified point-of-sale experience. Sheth also points to Klarna\u2019s success in evolving from a mere financing tool into a consumer shopping hub as a sign that BNPL\u2019s future lies in more than just splitting payments \u2014 it\u2019s about capturing and retaining consumer attention.\nCollectively, these five perspectives paint a picture of a rapidly maturing BNPL industry poised for mainstream adoption \u2014 and they form the foundation of our new eBook, which delves deeper into how installment-based payments may shape the future of retail, banking and beyond.\nThe post Beyond Credit Cards: How \u2018Pay Later\u2019 Momentum Is Reshaping the Payments Ecosystem appeared first on PYMNTS.com.", "date_published": "2025-04-08T04:01:59-04:00", "date_modified": "2025-04-07T20:54:29-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/04/2025-Pay-Later-eBook-Hero-Image.jpg", "tags": [ "Affirm", "BNPL", "buy now pay later", "Connected Economy", "digital transformation", "ebook", "Featured News", "Marqeta", "MasterCard", "News", "PYMNTS News", "Splitit", "versatile credit" ] }, { "id": "https://www.pymnts.com/?p=2540771", "url": "https://www.pymnts.com/bnpl/2025/fashion-retailer-revolve-to-add-affirms-pay-over-time-option/", "title": "Fashion Retailer Revolve to Add Affirm\u2019s Pay-Over-Time Option", "content_html": "Fashion retailer Revolve Group will soon enable its customers in the U.S. to use Affirm to pay over time.
\nThe retailer will add this payment method in the U.S. in the coming days, both online and in its mobile app, and plans to then expand it to its customers in Canada and the U.K., the companies said in a Wednesday (April 2) press release.
\n\u201cShopping should be effortless, and payment flexibility is a key part of our premium experience,\u201d Revolve Group Co-founder and Co-CEO Mike Karanikolas said in the release. \u201cAffirm stood out for its transparent approach, customized and flexible options, and proven ability to build trust with millions of loyal shoppers.\u201d
\nCustomers will be able to select Affirm at checkout, complete an eligibility check and, if approved, choose from biweekly or monthly payment plans, according to the release.
\n\u201cUnlike most credit cards and other pay-over-time options, Affirm never charges late fees, hidden fees or compound interest,\u201d Pat Suh, senior vice president of revenue at Affirm, said in the release. “As shoppers refresh their wardrobes for the warmer months, Affirm provides Revolve customers with the confidence to secure the styles they love with flexible payment options.\u201d
\nMore than 55 fashion merchants have integrated Affirm and begun offering it at checkout over the last six months, according to the release.
\nBuy now, pay later (BNPL) is one of the embedded finance features that are emerging as top priorities for payment facilitators, independent software vendors and marketplaces, according to the PYMNTS Intelligence and Fiserv collaboration, \u201cHow Embedded Finance Drives Retail Platform Innovation.\u201d
\nThe report found that BNPL and other embedded finance features have become a priority as firms strive to continuously enhance their payments acceptance offerings to meet customers\u2019 expectation for smooth online buying experiences.
\nFor consumers, the lure of paying over time lies with the predictability of the payment, as they see a point at which all has been paid off, Affirm founder and CEO Max Levchin told PYMNTS CEO Karen Webster in an interview posted Thursday (March 27).
\n\u201cThe appeal of pay later is not that it\u2019s some cool way of borrowing money,\u201d Levchin said. \u201cIt\u2019s the sense of control around the schedule and the plan that you create.\u201d
\nThe post Fashion Retailer Revolve to Add Affirm\u2019s Pay-Over-Time Option appeared first on PYMNTS.com.
\n", "content_text": "Fashion retailer Revolve Group will soon enable its customers in the U.S. to use Affirm to pay over time.\nThe retailer will add this payment method in the U.S. in the coming days, both online and in its mobile app, and plans to then expand it to its customers in Canada and the U.K., the companies said in a Wednesday (April 2) press release.\n\u201cShopping should be effortless, and payment flexibility is a key part of our premium experience,\u201d Revolve Group Co-founder and Co-CEO Mike Karanikolas said in the release. \u201cAffirm stood out for its transparent approach, customized and flexible options, and proven ability to build trust with millions of loyal shoppers.\u201d\nCustomers will be able to select Affirm at checkout, complete an eligibility check and, if approved, choose from biweekly or monthly payment plans, according to the release.\n\u201cUnlike most credit cards and other pay-over-time options, Affirm never charges late fees, hidden fees or compound interest,\u201d Pat Suh, senior vice president of revenue at Affirm, said in the release. “As shoppers refresh their wardrobes for the warmer months, Affirm provides Revolve customers with the confidence to secure the styles they love with flexible payment options.\u201d\nMore than 55 fashion merchants have integrated Affirm and begun offering it at checkout over the last six months, according to the release.\nBuy now, pay later (BNPL) is one of the embedded finance features that are emerging as top priorities for payment facilitators, independent software vendors and marketplaces, according to the PYMNTS Intelligence and Fiserv collaboration, \u201cHow Embedded Finance Drives Retail Platform Innovation.\u201d\nThe report found that BNPL and other embedded finance features have become a priority as firms strive to continuously enhance their payments acceptance offerings to meet customers\u2019 expectation for smooth online buying experiences.\nFor consumers, the lure of paying over time lies with the predictability of the payment, as they see a point at which all has been paid off, Affirm founder and CEO Max Levchin told PYMNTS CEO Karen Webster in an interview posted Thursday (March 27).\n\u201cThe appeal of pay later is not that it\u2019s some cool way of borrowing money,\u201d Levchin said. \u201cIt\u2019s the sense of control around the schedule and the plan that you create.\u201d\nThe post Fashion Retailer Revolve to Add Affirm\u2019s Pay-Over-Time Option appeared first on PYMNTS.com.", "date_published": "2025-04-02T16:43:02-04:00", "date_modified": "2025-04-02T16:43:02-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/04/fashion-Revolve-Affirm.png", "tags": [ "Affirm", "BNPL", "buy now pay later", "digital transformation", "ecommerce", "fashion", "installment payments", "News", "Pay Later", "PYMNTS News", "Retail", "Revolve Group", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2540322", "url": "https://www.pymnts.com/bnpl/2025/klarna-brings-bnpl-to-high-speed-rail-with-eurostar-partnership/", "title": "Klarna Brings BNPL to High-Speed Rail With Eurostar Partnership", "content_html": "Pay-later platform\u00a0Klarna\u00a0has launched a partnership with rail service Eurostar.
\nThe collaboration,\u00a0announced\u00a0Wednesday (April 2), lets travelers in the U.K. and France split the cost of their tickets into three interest-free payments, and marks Klarna\u2019s first time working with a train provider.
\n\u201cEurostar has changed the way we travel between the UK and Europe \u2026 now Klarna is changing the way we pay for it,\u201d\u00a0Raji Behal, head of Klarna\u2019s western and southern Europe operations, said in a news release.
\n\u201cWhether you\u2019re heading to Paris for a weekend getaway or Brussels for business, you can now check out with Klarna and choose to pay in full or split the cost over time.\u201d
\nThe release notes that the partnership is happening as Eurostar is seeing an increasing number of travelers use its service, following a year in which it carried a record 19.5 million travelers.
\nWhile the new agreement marks Klarna\u2019s entry into the rail sector, the company is no stranger to the travel industry. Last year, Klarna launched partnerships\u00a0with travel website Expedia and luggage/travel accessory company\u00a0Brand Away.
\nResearch by PYMNTS Intelligence has found that buy now, pay later (BNPL) offerings such as Klarna have made significant inroads into the travel space. Nearly 20% of consumers surveyed said they opted to use BNPL as a payment option, according to\u00a0\u201cThe Credit Economy: How Consumers are Approaching Holiday Spending and Travel,\u201d\u00a0a collaboration between PYMNTS Intelligence and\u00a0i2c.
\nIn other pay-later news, PYMNTS explored the\u00a0evolution of the sector\u00a0in a conversation posted Wednesday with\u00a0Splitit\u00a0CEO\u00a0Nandan Sheth.
\nAs he told PYMNTS CEO Karen Webster, \u201cthings are\u00a0fairly fragmented\u00a0right now,\u201d especially for consumers who look to use transactional credit, seeking longer-term loans from a bank, and then for one-off solutions, moving toward traditional point-of-sale (POS) lenders.
\nAll the same, Sheth added, there are few principles that remain as consumers search for merchants and find deals.
\n\u201cIf I\u2019m a dominant credit provider, whether it\u2019s Klarna or a J.P. Morgan Chase, there\u2019s a value and a utility in consolidating the\u00a0credit needs of a consumer\u00a0off of my [own] platform,\u201d Sheth said. \u201cYou\u2019ll see more of that happening, and consumers will find it easier to deal with their trusted credit providers.\u201d
\nThe post Klarna Brings BNPL to High-Speed Rail With Eurostar Partnership appeared first on PYMNTS.com.
\n", "content_text": "Pay-later platform\u00a0Klarna\u00a0has launched a partnership with rail service Eurostar.\nThe collaboration,\u00a0announced\u00a0Wednesday (April 2), lets travelers in the U.K. and France split the cost of their tickets into three interest-free payments, and marks Klarna\u2019s first time working with a train provider.\n\u201cEurostar has changed the way we travel between the UK and Europe \u2026 now Klarna is changing the way we pay for it,\u201d\u00a0Raji Behal, head of Klarna\u2019s western and southern Europe operations, said in a news release.\n\u201cWhether you\u2019re heading to Paris for a weekend getaway or Brussels for business, you can now check out with Klarna and choose to pay in full or split the cost over time.\u201d\nThe release notes that the partnership is happening as Eurostar is seeing an increasing number of travelers use its service, following a year in which it carried a record 19.5 million travelers.\nWhile the new agreement marks Klarna\u2019s entry into the rail sector, the company is no stranger to the travel industry. Last year, Klarna launched partnerships\u00a0with travel website Expedia and luggage/travel accessory company\u00a0Brand Away.\nResearch by PYMNTS Intelligence has found that buy now, pay later (BNPL) offerings such as Klarna have made significant inroads into the travel space. Nearly 20% of consumers surveyed said they opted to use BNPL as a payment option, according to\u00a0\u201cThe Credit Economy: How Consumers are Approaching Holiday Spending and Travel,\u201d\u00a0a collaboration between PYMNTS Intelligence and\u00a0i2c.\nIn other pay-later news, PYMNTS explored the\u00a0evolution of the sector\u00a0in a conversation posted Wednesday with\u00a0Splitit\u00a0CEO\u00a0Nandan Sheth.\nAs he told PYMNTS CEO Karen Webster, \u201cthings are\u00a0fairly fragmented\u00a0right now,\u201d especially for consumers who look to use transactional credit, seeking longer-term loans from a bank, and then for one-off solutions, moving toward traditional point-of-sale (POS) lenders.\nAll the same, Sheth added, there are few principles that remain as consumers search for merchants and find deals.\n\u201cIf I\u2019m a dominant credit provider, whether it\u2019s Klarna or a J.P. Morgan Chase, there\u2019s a value and a utility in consolidating the\u00a0credit needs of a consumer\u00a0off of my [own] platform,\u201d Sheth said. \u201cYou\u2019ll see more of that happening, and consumers will find it easier to deal with their trusted credit providers.\u201d\nThe post Klarna Brings BNPL to High-Speed Rail With Eurostar Partnership appeared first on PYMNTS.com.", "date_published": "2025-04-02T08:50:29-04:00", "date_modified": "2025-04-02T08:53:18-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/04/Klarna-BNPL-Eurostar.png", "tags": [ "BNPL", "buy now pay later", "EMEA", "Eurostar", "installment payments", "Klarna", "News", "partnerships", "Pay Later", "PYMNTS News", "Rail Travel", "travel", "Travel Payments", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2539609", "url": "https://www.pymnts.com/bnpl/2025/klarna-offered-15-million-warrants-to-seal-walmart-partnership/", "title": "Klarna Offered 15 Million Warrants to Seal Walmart Partnership", "content_html": "Klarna is reportedly facing backlash ahead of its $15 billion initial public offering (IPO).
\nAs the Financial Times (FT) reported Tuesday (April 1), some of that negativity stems from the Swedish FinTech\u2019s recent buy now, pay later (BNPL) deal with DoorDash.
\nThe partnership, the report said, led to a wave of social media jokes, with people comparing the idea of incurring debt to cover food deliveries to the subprime loans at the root of the 2008 financial crisis.
\nKlarna CEO Sebastian Siemiatkowski defended the arrangement on X: \u201cDoorDash offers many products beyond food!\u2009.\u2009.\u2009.\u2009I know we are most famous for pay in 4. But you can use a credit card at DoorDash as well.\u201d
\nThis backlash, the FT report argues, spotlights the debate and skepticism around BNPL loans. Advocates view Klarna\u2019s upcoming U.S. IPO as a milestone in BNPL\u2019s journey to become a consumer finance staple.\u00a0
\nCritics of BNPL, the report adds, say there are vulnerabilities to this short-term and interest-free style of lending, such as weaknesses to consumer downturns and sensitivity to increased interest rates, which in turn increase funding costs.
\nThe report also focuses on Klarna\u2019s recent partnership with Walmart, which already had an arrangement with rival BNPL company Affirm. To land that deal, the FT said, Klarna offered Walmart 15.3 million warrants that can be converted into Klarna stock, valued at $500 million.
\nDan Dolev, an analyst at Mizuho, labeled the announcement as \u201ca publicity stunt\u201d aimed at driving up sentiment before Klarna goes public.
\n\u201cIt\u2019s really an expensive press release,\u201d said Dolev.\u00a0
\nThe Klarna IPO is happening at a time when the U.S. market for BNPL services is ballooning.\u00a0
\nPYMNTS Intelligence research has shown that market totaling $175 billion. It\u2019s a small portion of consumer spending, but still\u00a0 represents an 88-fold spike in BNPL over just six years.
\n\u201cGrowing consumer demand for fixed installment plans when they make a purchase is fueling hot competition among FinTechs and traditional banks, not just for consumer wallets but also for ties with merchants,\u201d PYMNTS wrote last month. \u201cThe pay later ecosystem is rapidly evolving to change how Americans shop and merchants sell goods and services.\u201d
\nThe research \u2014 from the PYMNTS Intelligence special report \u201cPay Later Revolution: Redefining the Credit Economy\u201d\u00a0\u2014 finds that 51.2% of American consumers who use BNPL do so out of necessity, compared to 46.1% who use it out of convenience.
\nThese findings, PYMNTS wrote, demonstrate that \u201cBNPL is no longer the exclusive provenance of shoppers with crimped pocketbooks.\u201d
\nThe post Klarna Offered 15 Million Warrants to Seal Walmart Partnership appeared first on PYMNTS.com.
\n", "content_text": "Klarna is reportedly facing backlash ahead of its $15 billion initial public offering (IPO).\nAs the Financial Times (FT) reported Tuesday (April 1), some of that negativity stems from the Swedish FinTech\u2019s recent buy now, pay later (BNPL) deal with DoorDash.\nThe partnership, the report said, led to a wave of social media jokes, with people comparing the idea of incurring debt to cover food deliveries to the subprime loans at the root of the 2008 financial crisis.\nKlarna CEO Sebastian Siemiatkowski defended the arrangement on X: \u201cDoorDash offers many products beyond food!\u2009.\u2009.\u2009.\u2009I know we are most famous for pay in 4. But you can use a credit card at DoorDash as well.\u201d\nThis backlash, the FT report argues, spotlights the debate and skepticism around BNPL loans. Advocates view Klarna\u2019s upcoming U.S. IPO as a milestone in BNPL\u2019s journey to become a consumer finance staple.\u00a0\nCritics of BNPL, the report adds, say there are vulnerabilities to this short-term and interest-free style of lending, such as weaknesses to consumer downturns and sensitivity to increased interest rates, which in turn increase funding costs.\nThe report also focuses on Klarna\u2019s recent partnership with Walmart, which already had an arrangement with rival BNPL company Affirm. To land that deal, the FT said, Klarna offered Walmart 15.3 million warrants that can be converted into Klarna stock, valued at $500 million.\nDan Dolev, an analyst at Mizuho, labeled the announcement as \u201ca publicity stunt\u201d aimed at driving up sentiment before Klarna goes public.\n\u201cIt\u2019s really an expensive press release,\u201d said Dolev.\u00a0\nThe Klarna IPO is happening at a time when the U.S. market for BNPL services is ballooning.\u00a0\nPYMNTS Intelligence research has shown that market totaling $175 billion. It\u2019s a small portion of consumer spending, but still\u00a0 represents an 88-fold spike in BNPL over just six years.\n\u201cGrowing consumer demand for fixed installment plans when they make a purchase is fueling hot competition among FinTechs and traditional banks, not just for consumer wallets but also for ties with merchants,\u201d PYMNTS wrote last month. \u201cThe pay later ecosystem is rapidly evolving to change how Americans shop and merchants sell goods and services.\u201d\nThe research \u2014 from the PYMNTS Intelligence special report \u201cPay Later Revolution: Redefining the Credit Economy\u201d\u00a0\u2014 finds that 51.2% of American consumers who use BNPL do so out of necessity, compared to 46.1% who use it out of convenience.\nThese findings, PYMNTS wrote, demonstrate that \u201cBNPL is no longer the exclusive provenance of shoppers with crimped pocketbooks.\u201d\nThe post Klarna Offered 15 Million Warrants to Seal Walmart Partnership appeared first on PYMNTS.com.", "date_published": "2025-04-01T06:52:52-04:00", "date_modified": "2025-04-01T13:53:02-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/Klarna-IPO.jpg", "tags": [ "Affirm", "alternative credit", "BNPL", "buy now pay later", "installment payments", "Klarna", "Klarna IPO", "News", "partnerships", "Pay Later", "PYMNTS News", "walmart", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2520113", "url": "https://www.pymnts.com/bnpl/2025/from-1960s-tech-to-2025-transactions-the-infrastructure-leap-powering-bnpls-boom/", "title": "From 1960s Tech to 2025 Transactions: The Infrastructure Leap Powering BNPL\u2019s Boom", "content_html": "As this week\u2019s \u201cPay Later Unpacked\u201d virtual event draws to a close, we\u2019ve heard a lot from the consumer-facing side of the house, as consumers are defining the use cases and payment preferences that drive this new format.
\nWe\u2019ve heard a lot about how buy now, pay later (BNPL) services have fundamentally transformed consumer lending by underwriting individual transactions rather than consumer credit profiles themselves.
\nBut as the week closes out, let\u2019s give payment processors their due. The BNPL revolution wouldn\u2019t be possible without modern payment processing infrastructure that bypasses decades-old financial systems.
\nAccording to Todd Pollak, chief revenue officer at Marqeta, the payment processing landscape has required significant innovation to accommodate the rapid growth of BNPL services.
\n\u201cMost of the technology and infrastructure for payments that merchants use is built on systems and structures that were put in place in the 1960s and \u201970s,\u201d Pollak said in a recent interview. \u201cEven the networks and their operating procedures are still based on code that was developed almost 50, 60 years ago.\u201d
\nThis legacy infrastructure wasn\u2019t designed to handle the unique requirements of BNPL transactions, creating barriers to adoption. Marqeta has positioned itself as a critical enabler in this space by developing solutions that work around these limitations.
\n\u201cOne of the amazing innovations that Marqeta brings to the market that\u2019s enabled the growth of BNPL is that we figured out creative ways to manage it and overcome some of the limitations that it has in order to really drive penetration at merchants,\u201d Pollak said. \u201cWithout a Marqeta, BNPL probably doesn\u2019t exist in the form or the size and scale that you see it at today.\u201d
\nThe growth has been substantial, with Pollak noting that the BNPL industry now represents about \u201c$18 billion in loans\u201d developed over just \u201cfive to 10 years\u201d as the payment method \u201cexploded in popularity.\u201d Pollak said he sees continued opportunity for both merchants and BNPL providers, with Marqeta \u201cat the center of that in terms of powering the industry.\u201d
\nAt that center, the line between traditional lending and BNPL continues to blur as established financial institutions seek to enter the space. This convergence presents significant technological challenges, according to Pollak.
\n\u201cIf you are on legacy infrastructure that you\u2019ve been processing payments on for your entire history, you are now trying to figure out: \u2018How do you get access to wallets?\u2019\u201d Pollak said, noting that Apple Pay and Google Pay, for example, are not set up for BNPL transactions tokenized in the cloud. This technological gap has established financial institutions looking for solutions.
\n\u201cLegacy providers, whether that be traditional banks, traditional credit providers, issuers coming to Marqeta and probably others, are asking questions about how they would get access to real-time capabilities,\u201d Pollak said. \u201cThey want real-time APIs (application programming interfaces) so that they can participate in the new economy.\u201d
\nAt the heart of Marqeta\u2019s strategy is removing friction for merchants, and those frictions are identified by Pollak as \u201ctruly the choke point in BNPL.\u201d The complex web of systems integration presents significant challenges.
\n\u201cYou need access to all the systems on the merchant side in order to complete that transaction and fulfill that order,\u201d he said. \u201cSo that means inventory management systems, being able to pass the order value, being able to pass the shipping address, making sure that order gets fulfilled, and then there are returns. We focus a lot on that merchant experience and eliminating that friction.\u201d
\nThe regulatory landscape for BNPL remains in flux, creating challenges for providers. \u201cGovernment is always behind the innovation curve,\u201d Pollak said. \u201cRisk and compliance and regulation tends to follow these very, very fast-growing technology companies who have disrupted a space.\u201d
\nDespite the uncertainty, Pollak believes the industry is adapting. \u201cWe\u2019ve seen some of what I will call gray area regulations around, is this true credit? Is it true lending? What does that mean for consumers and how you have to protect them? But I do think that the industry has adapted.\u201d
\nFor BNPL providers, scaling operations while maintaining effective risk management presents significant challenges. Marqeta addresses this by centralizing certain functions across the ecosystem.
\n\u201cThe cost of scaling your regulatory risk compliance operations inside of your company is a significant cost,\u201d Pollak said. \u201cAs a central operator servicing all BNPL providers, we are a full program manager, and we are investing in our own risk and compliance capabilities.\u201d
\nThis approach allows BNPL providers to focus on their core strengths, which Pollak said are advancing underwriting, upgrading the merchant value proposition and upgrading the consumer value proposition.
\nLooking ahead, Pollak sees BNPL as just one aspect of the broader trend toward embedded finance, with innovations continuing to expand financial inclusion.
\n\u201c[There are] really, really clever companies that are figuring out how to take advantage of all these new capabilities that exist with modern providers who are doing things in real time through APIs in the cloud that enable them to think differently about how they assess risk, how they manage risk and how they provide capital to folks that frankly have very thin file that a bank would never, never consider doing,\u201d Pollak said.
\n\u201cOur job, as we see it, is to provide the tools and the infrastructure, but we are reliant on the innovators that are out there to take the capabilities that we\u2019ve put together and be thoughtful about how they bring those to bear for consumers,\u201d he said.
\nThe post From 1960s Tech to 2025 Transactions: The Infrastructure Leap Powering BNPL\u2019s Boom appeared first on PYMNTS.com.
\n", "content_text": "As this week\u2019s \u201cPay Later Unpacked\u201d virtual event draws to a close, we\u2019ve heard a lot from the consumer-facing side of the house, as consumers are defining the use cases and payment preferences that drive this new format. \nWe\u2019ve heard a lot about how buy now, pay later (BNPL) services have fundamentally transformed consumer lending by underwriting individual transactions rather than consumer credit profiles themselves. \nBut as the week closes out, let\u2019s give payment processors their due. The BNPL revolution wouldn\u2019t be possible without modern payment processing infrastructure that bypasses decades-old financial systems.\nAccording to Todd Pollak, chief revenue officer at Marqeta, the payment processing landscape has required significant innovation to accommodate the rapid growth of BNPL services. \n\u201cMost of the technology and infrastructure for payments that merchants use is built on systems and structures that were put in place in the 1960s and \u201970s,\u201d Pollak said in a recent interview. \u201cEven the networks and their operating procedures are still based on code that was developed almost 50, 60 years ago.\u201d\nThis legacy infrastructure wasn\u2019t designed to handle the unique requirements of BNPL transactions, creating barriers to adoption. Marqeta has positioned itself as a critical enabler in this space by developing solutions that work around these limitations.\n\u201cOne of the amazing innovations that Marqeta brings to the market that\u2019s enabled the growth of BNPL is that we figured out creative ways to manage it and overcome some of the limitations that it has in order to really drive penetration at merchants,\u201d Pollak said. \u201cWithout a Marqeta, BNPL probably doesn\u2019t exist in the form or the size and scale that you see it at today.\u201d\nThe growth has been substantial, with Pollak noting that the BNPL industry now represents about \u201c$18 billion in loans\u201d developed over just \u201cfive to 10 years\u201d as the payment method \u201cexploded in popularity.\u201d Pollak said he sees continued opportunity for both merchants and BNPL providers, with Marqeta \u201cat the center of that in terms of powering the industry.\u201d\nTraditional Finance and BNPL Convergence\nAt that center, the line between traditional lending and BNPL continues to blur as established financial institutions seek to enter the space. This convergence presents significant technological challenges, according to Pollak.\n\u201cIf you are on legacy infrastructure that you\u2019ve been processing payments on for your entire history, you are now trying to figure out: \u2018How do you get access to wallets?\u2019\u201d Pollak said, noting that Apple Pay and Google Pay, for example, are not set up for BNPL transactions tokenized in the cloud. This technological gap has established financial institutions looking for solutions. \n\u201cLegacy providers, whether that be traditional banks, traditional credit providers, issuers coming to Marqeta and probably others, are asking questions about how they would get access to real-time capabilities,\u201d Pollak said. \u201cThey want real-time APIs (application programming interfaces) so that they can participate in the new economy.\u201d\nAt the heart of Marqeta\u2019s strategy is removing friction for merchants, and those frictions are identified by Pollak as \u201ctruly the choke point in BNPL.\u201d The complex web of systems integration presents significant challenges.\n\u201cYou need access to all the systems on the merchant side in order to complete that transaction and fulfill that order,\u201d he said. \u201cSo that means inventory management systems, being able to pass the order value, being able to pass the shipping address, making sure that order gets fulfilled, and then there are returns. We focus a lot on that merchant experience and eliminating that friction.\u201d \nNavigating Regulatory Uncertainty\nThe regulatory landscape for BNPL remains in flux, creating challenges for providers. \u201cGovernment is always behind the innovation curve,\u201d Pollak said. \u201cRisk and compliance and regulation tends to follow these very, very fast-growing technology companies who have disrupted a space.\u201d\nDespite the uncertainty, Pollak believes the industry is adapting. \u201cWe\u2019ve seen some of what I will call gray area regulations around, is this true credit? Is it true lending? What does that mean for consumers and how you have to protect them? But I do think that the industry has adapted.\u201d\nFor BNPL providers, scaling operations while maintaining effective risk management presents significant challenges. Marqeta addresses this by centralizing certain functions across the ecosystem.\n\u201cThe cost of scaling your regulatory risk compliance operations inside of your company is a significant cost,\u201d Pollak said. \u201cAs a central operator servicing all BNPL providers, we are a full program manager, and we are investing in our own risk and compliance capabilities.\u201d\nThis approach allows BNPL providers to focus on their core strengths, which Pollak said are advancing underwriting, upgrading the merchant value proposition and upgrading the consumer value proposition.\nFuture of Embedded Finance\nLooking ahead, Pollak sees BNPL as just one aspect of the broader trend toward embedded finance, with innovations continuing to expand financial inclusion.\n\u201c[There are] really, really clever companies that are figuring out how to take advantage of all these new capabilities that exist with modern providers who are doing things in real time through APIs in the cloud that enable them to think differently about how they assess risk, how they manage risk and how they provide capital to folks that frankly have very thin file that a bank would never, never consider doing,\u201d Pollak said. \n\u201cOur job, as we see it, is to provide the tools and the infrastructure, but we are reliant on the innovators that are out there to take the capabilities that we\u2019ve put together and be thoughtful about how they bring those to bear for consumers,\u201d he said.\nThe post From 1960s Tech to 2025 Transactions: The Infrastructure Leap Powering BNPL\u2019s Boom appeared first on PYMNTS.com.", "date_published": "2025-03-31T04:01:48-04:00", "date_modified": "2025-03-30T20:24:31-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/03/marqeta-BNPL.jpg", "tags": [ "BNPL", "buy now pay later", "consumer finances", "consumer loans", "Consumer Spending", "digital transformation", "Featured News", "installment payments", "loans", "Marqeta", "News", "Pay Later", "Pay Later Unpacked", "Payment Methods", "payments innovation", "PYMNTS News", "pymnts tv", "Todd Pollak", "video" ] }, { "id": "https://www.pymnts.com/?p=2519646", "url": "https://www.pymnts.com/bnpl/2025/versatile-credit-ceo-economic-uncertainty-drives-pay-later-merchant-benefits/", "title": "Versatile Credit CEO: Economic Uncertainty Drives Pay-Later Merchant Benefits", "content_html": "Here\u2019s the net-net on the pay-later economy: The predictability of paying for purchases over time in fixed monthly installments is appealing to consumers who value the ability to manage their personal cash flow. But what do merchants like about it? As Versatile Credit CEO Ed O\u2019Donnell told Karen Webster, merchants are using credit to drive sales.
\nVersatile Credit, partnering with dozens of lenders to deliver financing options at the point of sale, has seen a steady drumbeat of merchants signing up to broaden the payments choices they can offer customers, who have spending power and credit \u201cdry powder\u201d to keep commerce going.
\nThe platform, he noted, presents an opportunity for consumers to finance their chosen purchases\u00a0 with enterprises that might not have previously been able to offer a range of credit options. Application volumes, as measured in January and February of this year, are up year over year, said O\u2019Donnell.
\n\u201cWe\u2019ve seen recovery in the verticals where we play today,\u201d he told Webster as part of the PYMNTS on Air event, \u201cBNPL: Pay Later Unpacked,\u201d adding that \u201cconsumers are still being intelligent about how they use financing \u2014 short-term financing and promotional financing \u2014 to help make the purchases that they feel they need to make or they want to make.\u201d That\u2019s especially true of younger consumers who want to avoid interest payments that will turn a $1,000 purchase into a $3,000 transaction over several years.
\nAnd against that backdrop, said O\u2019Donnell, no matter the type of plan on offer, \u201cpeople want certainty \u2014 especially in an environment where, economically, things are a bit uncertain. Planning is important and confidence is important \u2014 [and with pay later] you can create your own confidence within your own budget.\u201d
\nThe profiles of the merchants connecting to lenders via the Versatile Credit platform are changing too.\u00a0 O\u2019Donnell noted that a few years ago, larger retailers dominated; now that\u2019s shifted to include small and mid-sized businesses. Providers such as O\u2019Donnell\u2019s firm also offer white-label offerings so that lenders can bring far-ranging credit offerings to merchants.
\n\u201cWhen we started,\u201d several years ago, said O\u2019Donnell of Versatile Credit, \u201cas just the supply side of the business \u2014 we could route consumer data to willing lenders and they could make credit decisions. It was all pretty much done in a vacuum.\u201d But newer data driven models marry different subsets of information to predict how people will pay.
\n\u201cIf I\u2019m on the lender side,\u201d said O\u2019Donnell, \u201cI can be more aggressive with a general credit box if I pair up with other lenders, and if I\u2019m on the merchant side, now I don\u2019t have to be a larger enterprise to go out and get a really comprehensive credit programs \u2014 without \u2018a big spend,\u2019 and lenders support me coming onto the Versatile platform to get the same credit products that big enterprises have available to them.\u201d The net impact is that there\u2019s a swath of lenders presented to the end customer, from banks offering credit lines of several thousands of dollars down to short-term, buy now, pay later (BNPL) products.
\n\u201cThey\u2019re complementary rather than completely competitive, the way it used to be,\u201d O\u2019Donnell told Webster, which in turn enables consumers to pay for elective medical procedures or home improvement products.
\nThe actual connectivity between the lender and the merchant has shifted with the boon of technology too, said O\u2019Donnell, who told Webster that the traditional, age-old, paper-based onboarding and manual underwriting has been improved by alternative data and artificial intelligence (AI). And that, said O\u2019Donnell, can help speed the financing of, say, fixing a hole in the roof when the contractor\u2019s standing in the middle of the kitchen, and the homeowner has to decide what to do.
\n\u201cShowing and telling the customer [what\u2019s available] and bringing technology into that compliant flow guarantees that the consumer is getting all the disclosures they need \u2014 and that the best available products are being put in front of them so they can say yes or no \u2026 every screen and sentence that\u2019s disclosed in the credit process is approved by compliance and legal departments.\u201d
\nThe enhanced data and risk analysis also means, said O\u2019Donnell, that lenders can expand the consumer populations they reach \u2014 as a traditionally subprime lender, for example, can move \u201cupscale\u201d and make offers that they might not have gotten in a different era of lending, and thus capture profitable, loyal (and new) prospects.
\n\u201cThe ability of merchants to offer more products will drive sales,\u201d said O\u2019Donell, \u201cand that\u2019s going to hold true even if things get a bit more chaotic and uncertain. The consumer also values having choices.\u201d
\nThe post Versatile Credit CEO: Economic Uncertainty Drives Pay-Later Merchant Benefits appeared first on PYMNTS.com.
\n", "content_text": "Here\u2019s the net-net on the pay-later economy: The predictability of paying for purchases over time in fixed monthly installments is appealing to consumers who value the ability to manage their personal cash flow. But what do merchants like about it? As Versatile Credit CEO Ed O\u2019Donnell told Karen Webster, merchants are using credit to drive sales.\nVersatile Credit, partnering with dozens of lenders to deliver financing options at the point of sale, has seen a steady drumbeat of merchants signing up to broaden the payments choices they can offer customers, who have spending power and credit \u201cdry powder\u201d to keep commerce going.\nThe platform, he noted, presents an opportunity for consumers to finance their chosen purchases\u00a0 with enterprises that might not have previously been able to offer a range of credit options. Application volumes, as measured in January and February of this year, are up year over year, said O\u2019Donnell.\n\u201cWe\u2019ve seen recovery in the verticals where we play today,\u201d he told Webster as part of the PYMNTS on Air event, \u201cBNPL: Pay Later Unpacked,\u201d adding that \u201cconsumers are still being intelligent about how they use financing \u2014 short-term financing and promotional financing \u2014 to help make the purchases that they feel they need to make or they want to make.\u201d That\u2019s especially true of younger consumers who want to avoid interest payments that will turn a $1,000 purchase into a $3,000 transaction over several years.\nAnd against that backdrop, said O\u2019Donnell, no matter the type of plan on offer, \u201cpeople want certainty \u2014 especially in an environment where, economically, things are a bit uncertain. Planning is important and confidence is important \u2014 [and with pay later] you can create your own confidence within your own budget.\u201d\nShifting Profiles\nThe profiles of the merchants connecting to lenders via the Versatile Credit platform are changing too.\u00a0 O\u2019Donnell noted that a few years ago, larger retailers dominated; now that\u2019s shifted to include small and mid-sized businesses. Providers such as O\u2019Donnell\u2019s firm also offer white-label offerings so that lenders can bring far-ranging credit offerings to merchants.\n\u201cWhen we started,\u201d several years ago, said O\u2019Donnell of Versatile Credit, \u201cas just the supply side of the business \u2014 we could route consumer data to willing lenders and they could make credit decisions. It was all pretty much done in a vacuum.\u201d But newer data driven models marry different subsets of information to predict how people will pay.\n\u201cIf I\u2019m on the lender side,\u201d said O\u2019Donnell, \u201cI can be more aggressive with a general credit box if I pair up with other lenders, and if I\u2019m on the merchant side, now I don\u2019t have to be a larger enterprise to go out and get a really comprehensive credit programs \u2014 without \u2018a big spend,\u2019 and lenders support me coming onto the Versatile platform to get the same credit products that big enterprises have available to them.\u201d The net impact is that there\u2019s a swath of lenders presented to the end customer, from banks offering credit lines of several thousands of dollars down to short-term, buy now, pay later (BNPL) products.\n\u201cThey\u2019re complementary rather than completely competitive, the way it used to be,\u201d O\u2019Donnell told Webster, which in turn enables consumers to pay for elective medical procedures or home improvement products.\nThe actual connectivity between the lender and the merchant has shifted with the boon of technology too, said O\u2019Donnell, who told Webster that the traditional, age-old, paper-based onboarding and manual underwriting has been improved by alternative data and artificial intelligence (AI). And that, said O\u2019Donnell, can help speed the financing of, say, fixing a hole in the roof when the contractor\u2019s standing in the middle of the kitchen, and the homeowner has to decide what to do.\n\u201cShowing and telling the customer [what\u2019s available] and bringing technology into that compliant flow guarantees that the consumer is getting all the disclosures they need \u2014 and that the best available products are being put in front of them so they can say yes or no \u2026 every screen and sentence that\u2019s disclosed in the credit process is approved by compliance and legal departments.\u201d\nThe enhanced data and risk analysis also means, said O\u2019Donnell, that lenders can expand the consumer populations they reach \u2014 as a traditionally subprime lender, for example, can move \u201cupscale\u201d and make offers that they might not have gotten in a different era of lending, and thus capture profitable, loyal (and new) prospects.\n\u201cThe ability of merchants to offer more products will drive sales,\u201d said O\u2019Donell, \u201cand that\u2019s going to hold true even if things get a bit more chaotic and uncertain. The consumer also values having choices.\u201d\nThe post Versatile Credit CEO: Economic Uncertainty Drives Pay-Later Merchant Benefits appeared first on PYMNTS.com.", "date_published": "2025-03-28T04:02:01-04:00", "date_modified": "2025-03-27T19:35:28-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/03/Versatile-Credit-pay-later.png", "tags": [ "BNPL", "buy now pay later", "Consumer Spending", "credit", "Ed O\u2019Donnell", "Featured News", "installment payments", "News", "Pay Later", "Pay Later Unpacked", "Point of Sale Financing", "PYMNTS News", "pymnts tv", "Retail", "versatile credit", "video" ] }, { "id": "https://www.pymnts.com/?p=2517818", "url": "https://www.pymnts.com/bnpl/2025/affirm-forms-bnpl-pact-with-j-p-morgan-payments/", "title": "Affirm Forms BNPL Pact With J.P. Morgan Payments", "content_html": "Affirm is expanding its pay-later offering via a new agreement with J.P. Morgan Payments.
\nWith this partnership, announced Tuesday (March 25), Affirm\u2019s solutions become available to merchants on the J.P. Morgan Payments network in the U.S., letting them offer the company\u2019s buy now, pay later (BNPL) plans at checkout.
\nAccording to the companies\u2019 announcement, the collaboration is happening amid increased adoption of Affirm\u2019s services, with its active customer numbers reaching a record 21 million, up 23% year over year.
\n\u201cThe demand for diverse payment options, flexibility, and seamless transactions from both merchants and their customers is at an all-time high,\u201d said Michael Lozanoff, global head of merchant services at J.P. Morgan Payments.
\n\u201cBy incorporating Affirm as a payment method into our Commerce Platform, we are empowering businesses to deliver the services they need and the experiences that customers increasingly expect as part of their retail journey,\u201d he added.
\nThe partnership comes nearly a week after Affirm announced it would begin furnishing information about all of its payment plans to Experian starting April 1.
\n\u201cHaving all loans reflected in a consumer\u2019s financial profile will help protect and empower borrowers,\u201d Libor Michalek, Affirm president, said in a Wednesday (March 19) news release.
\n\u201dThe buy now, pay later industry must evolve from simply providing flexible payment options to helping consumers build their credit histories and better manage their finances, and we are pleased to be taking this step with Experian,\u201d Michalek said.
\nThe company said this expanded credit reporting will help consumers build their credit histories, while letting consumers and lenders make more informed decisions.
\nAs PYMNTS wrote soon after, Affirm\u2019s decision here is part of a growing movement toward including BNPL loans in credit and underwriting decisions.
\nIn February, FICO said it would work to add BNPL data to its credit scoring analysis. That company had teamed with Affirm on studies showing that \u2014 for the 85% of consumers who had opened a new BNPL account \u2014 there was generally a consistent impact on their FICO scores.
\nThat research also found that impacts on FICO Score predictiveness ranged modest improvements to no negative effect.
\n\u201cThe additional impact of having BNPL included in credit scoring may be that consumers will be averse to \u201cstacking\u201d short-term loans, with an eye on keeping their debt loads more manageable and boosting their credit scores at the same time,\u201d PYMNTS wrote.
\nThe post Affirm Forms BNPL Pact With J.P. Morgan Payments appeared first on PYMNTS.com.
\n", "content_text": "Affirm is expanding its pay-later offering via a new agreement with J.P. Morgan Payments.\nWith this partnership, announced Tuesday (March 25), Affirm\u2019s solutions become available to merchants on the J.P. Morgan Payments network in the U.S., letting them offer the company\u2019s buy now, pay later (BNPL) plans at checkout.\nAccording to the companies\u2019 announcement, the collaboration is happening amid increased adoption of Affirm\u2019s services, with its active customer numbers reaching a record 21 million, up 23% year over year.\n\u201cThe demand for diverse payment options, flexibility, and seamless transactions from both merchants and their customers is at an all-time high,\u201d said Michael Lozanoff, global head of merchant services at J.P. Morgan Payments.\n\u201cBy incorporating Affirm as a payment method into our Commerce Platform, we are empowering businesses to deliver the services they need and the experiences that customers increasingly expect as part of their retail journey,\u201d he added.\nThe partnership comes nearly a week after Affirm announced it would begin furnishing information about all of its payment plans to Experian starting April 1.\n\u201cHaving all loans reflected in a consumer\u2019s financial profile will help protect and empower borrowers,\u201d Libor Michalek, Affirm president, said in a Wednesday (March 19) news release.\n\u201dThe buy now, pay later industry must evolve from simply providing flexible payment options to helping consumers build their credit histories and better manage their finances, and we are pleased to be taking this step with Experian,\u201d Michalek said.\nThe company said this expanded credit reporting will help consumers build their credit histories, while letting consumers and lenders make more informed decisions.\nAs PYMNTS wrote soon after, Affirm\u2019s decision here is part of a growing movement toward including BNPL loans in credit and underwriting decisions.\nIn February, FICO said it would work to add BNPL data to its credit scoring analysis. That company had teamed with Affirm on studies showing that \u2014 for the 85% of consumers who had opened a new BNPL account \u2014 there was generally a consistent impact on their FICO scores.\nThat research also found that impacts on FICO Score predictiveness ranged modest improvements to no negative effect.\n\u201cThe additional impact of having BNPL included in credit scoring may be that consumers will be averse to \u201cstacking\u201d short-term loans, with an eye on keeping their debt loads more manageable and boosting their credit scores at the same time,\u201d PYMNTS wrote.\nThe post Affirm Forms BNPL Pact With J.P. Morgan Payments appeared first on PYMNTS.com.", "date_published": "2025-03-25T12:19:15-04:00", "date_modified": "2025-03-25T12:19:15-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/09/Affirm.jpg", "tags": [ "Affirm", "B2B", "B2B Payments", "BNPL", "buy now pay later", "commercial payments", "installment payments", "J.P. Morgan Payments", "News", "partnerships", "Pay Later", "Payment Methods", "PYMNTS News", "What's Hot", "What's Hot In B2B" ] }, { "id": "https://www.pymnts.com/?p=2515311", "url": "https://www.pymnts.com/bnpl/2025/doordash-launches-flexible-payment-options-with-klarna/", "title": "DoorDash Launches Flexible Payment Options With Klarna", "content_html": "Buy now, pay later (BNPL) options from Klarna will soon be available for DoorDash orders.
\nThe payments company announced its new integration partnership with the delivery platform in a Thursday (March 20) press release, saying it offers DoorDash customers in the U.S. flexibility and convenience when paying for delivery of restaurant food, groceries and retail goods.
\nAccording to the release, in the coming months (it didn\u2019t specify when), DoorDash.com and DoorDash app users will have access to three payment options: \u201cPay in Full,\u201d \u201cPay in 4\u201d and \u201cPay Later.\u201d
\nAs it implies, Pay in Full means the customer pays the total amount of their purchases immediately through Klarna\u2019s payment system. Pay in 4 divides the total cost into four equal and interest-free installments. The Pay Later option enables customers to defer their payments as their personal finances will allow.
\n\u201cOur partnership with DoorDash marks an important milestone in Klarna\u2019s expansion into everyday spending categories. By offering smarter, more flexible payment solutions for groceries, takeout, and retail essentials, we\u2019re making convenience even more accessible for millions of Americans,\u201d Klarna Chief Commercial Officer David Sykes said in the release.
\nThe new BNPL integration can be used to pay for the expanding array of products available through DoorDash, including electronics, home improvement supplies and beauty products, according to the release.
\nConsumers can also use Klarna\u2019s payment solutions for their DashPass Annual Plan, which offers benefits like free delivery and exclusive deals.
\nDashPass includes \u201cadded streaming and ride benefits at no extra cost,\u201d Anand Subbarayan, head of money products at DoorDash, said in the release.
\nThe partnership announcement comes on the heels of news that Klarna is moving toward an initial public offering (IPO) in the U.S.
\nIt remains to be seen how the new payment options will impact the workflow of the people who deliver for DoorDash. \u201cDashers\u201d in New York will be receiving a $16.7 million settlement amid accusations that the company deceptively used customer tips to subsidize wages between 2017 and 2019, rather than letting drivers keep their tips in addition to their guaranteed pay.
\nIn a statement, DoorDash said it no longer uses the pay model from that time period.
\nThe post DoorDash Launches Flexible Payment Options With Klarna appeared first on PYMNTS.com.
\n", "content_text": "Buy now, pay later (BNPL) options from Klarna will soon be available for DoorDash orders.\nThe payments company announced its new integration partnership with the delivery platform in a Thursday (March 20) press release, saying it offers DoorDash customers in the U.S. flexibility and convenience when paying for delivery of restaurant food, groceries and retail goods.\nAccording to the release, in the coming months (it didn\u2019t specify when), DoorDash.com and DoorDash app users will have access to three payment options: \u201cPay in Full,\u201d \u201cPay in 4\u201d and \u201cPay Later.\u201d\nAs it implies, Pay in Full means the customer pays the total amount of their purchases immediately through Klarna\u2019s payment system. Pay in 4 divides the total cost into four equal and interest-free installments. The Pay Later option enables customers to defer their payments as their personal finances will allow.\n\u201cOur partnership with DoorDash marks an important milestone in Klarna\u2019s expansion into everyday spending categories. By offering smarter, more flexible payment solutions for groceries, takeout, and retail essentials, we\u2019re making convenience even more accessible for millions of Americans,\u201d Klarna Chief Commercial Officer David Sykes said in the release.\nThe new BNPL integration can be used to pay for the expanding array of products available through DoorDash, including electronics, home improvement supplies and beauty products, according to the release.\nConsumers can also use Klarna\u2019s payment solutions for their DashPass Annual Plan, which offers benefits like free delivery and exclusive deals.\nDashPass includes \u201cadded streaming and ride benefits at no extra cost,\u201d Anand Subbarayan, head of money products at DoorDash, said in the release.\nThe partnership announcement comes on the heels of news that Klarna is moving toward an initial public offering (IPO) in the U.S.\nIt remains to be seen how the new payment options will impact the workflow of the people who deliver for DoorDash. \u201cDashers\u201d in New York will be receiving a $16.7 million settlement amid accusations that the company deceptively used customer tips to subsidize wages between 2017 and 2019, rather than letting drivers keep their tips in addition to their guaranteed pay.\nIn a statement, DoorDash said it no longer uses the pay model from that time period.\nThe post DoorDash Launches Flexible Payment Options With Klarna appeared first on PYMNTS.com.", "date_published": "2025-03-20T14:13:40-04:00", "date_modified": "2025-03-20T14:13:40-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/03/DoorDash-payment-Klarna.png", "tags": [ "BNPL", "buy now pay later", "delivery", "DoorDash", "ecommerce", "installment payments", "Klarna", "News", "partnerships", "Pay Later", "PYMNTS News", "Retail", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2514876", "url": "https://www.pymnts.com/bnpl/2025/adyen-and-affirm-expand-partnership-to-uk/", "title": "Adyen and Affirm Expand Partnership to UK", "content_html": "Global payments platform Adyen and BNPL platform Affirm have extended their partnership into the U.K., a move designed to help British merchants offer consumers more flexible payment options.
\nUnder the expanded collaboration, Adyen’s merchant customers in the U.K. can now integrate Affirm\u2019s installment payment services directly into their checkout systems. Affirm’s payment plans include both interest-free and interest-bearing options, allowing approved customers to select terms best aligned with their budgets.
\n\u201cAdyen customers all over the globe are demanding best-in-class payment experiences to boost business and drive customer engagement, which is why we are expanding our partnership with Affirm into the U.K.,\u201d said Nicole Olbe, Managing Director for Adyen in the U.K.
\nThe partnership builds on proven success in North America, where Adyen merchants offering Affirm saw significant growth. Annual transaction volumes through the partnership have increased more than sevenfold from 2021 to 2023.
\nRuth Spratt, Vice President and U.K. Country Manager at Affirm, highlighted the mutual benefits of the extended relationship, stating that British merchants can now leverage Affirm\u2019s consumer-centric financing solutions to drive customer engagement and business expansion.
\nThe partnership between the two companies began in November 2020, initially enabling Affirm payments for Adyen\u2019s U.S. merchants across digital and physical channels. In December 2024, Adyen extended Affirm\u2019s offerings to its platform customers in the U.S. and Canada, and the service became broadly available to Canadian merchants. Affirm formally launched its services in the U.K. in November 2024 under regulation by the Financial Conduct Authority.
\nU.K. merchants using Adyen can immediately access Affirm\u2019s installment payment solutions to support business growth and consumer spending flexibility.
\nThe recent\u00a0PYMNTS Intelligence report\u00a0\u201cHow People Pay: Cash-Short Consumers Drive BNPL Usage\u201d\u00a0found that consumers facing cash flow shortages are turning to alternative credit options like BNPL at a much higher rate than other consumers.
\n\u201cBNPL is bridging the gap for cash-strapped consumers. Consumers with cash flow shortages are 3.5 times more likely to use BNPL than consumers who are financially stable,\u201d PYMNTS wrote Monday (Dec. 16). \u201cMeanwhile, 8.9% of consumers who frequently\u00a0experience cash flow shortages\u00a0used BNPL in the past 30 days, compared to just 2.5% of financially stable consumers. BNPL is more accessible than traditional credit, allowing consumers to manage their financial demands without the restrictions of conventional credit.\u201d
\nThe post Adyen and Affirm Expand Partnership to UK appeared first on PYMNTS.com.
\n", "content_text": "Global payments platform Adyen and BNPL platform Affirm have extended their partnership into the U.K., a move designed to help British merchants offer consumers more flexible payment options.\nUnder the expanded collaboration, Adyen’s merchant customers in the U.K. can now integrate Affirm\u2019s installment payment services directly into their checkout systems. Affirm’s payment plans include both interest-free and interest-bearing options, allowing approved customers to select terms best aligned with their budgets.\n\u201cAdyen customers all over the globe are demanding best-in-class payment experiences to boost business and drive customer engagement, which is why we are expanding our partnership with Affirm into the U.K.,\u201d said Nicole Olbe, Managing Director for Adyen in the U.K.\nThe partnership builds on proven success in North America, where Adyen merchants offering Affirm saw significant growth. Annual transaction volumes through the partnership have increased more than sevenfold from 2021 to 2023.\nRuth Spratt, Vice President and U.K. Country Manager at Affirm, highlighted the mutual benefits of the extended relationship, stating that British merchants can now leverage Affirm\u2019s consumer-centric financing solutions to drive customer engagement and business expansion.\nThe partnership between the two companies began in November 2020, initially enabling Affirm payments for Adyen\u2019s U.S. merchants across digital and physical channels. In December 2024, Adyen extended Affirm\u2019s offerings to its platform customers in the U.S. and Canada, and the service became broadly available to Canadian merchants. Affirm formally launched its services in the U.K. in November 2024 under regulation by the Financial Conduct Authority.\nU.K. merchants using Adyen can immediately access Affirm\u2019s installment payment solutions to support business growth and consumer spending flexibility.\nThe recent\u00a0PYMNTS Intelligence report\u00a0\u201cHow People Pay: Cash-Short Consumers Drive BNPL Usage\u201d\u00a0found that consumers facing cash flow shortages are turning to alternative credit options like BNPL at a much higher rate than other consumers.\n\u201cBNPL is bridging the gap for cash-strapped consumers. Consumers with cash flow shortages are 3.5 times more likely to use BNPL than consumers who are financially stable,\u201d PYMNTS wrote Monday (Dec. 16). \u201cMeanwhile, 8.9% of consumers who frequently\u00a0experience cash flow shortages\u00a0used BNPL in the past 30 days, compared to just 2.5% of financially stable consumers. BNPL is more accessible than traditional credit, allowing consumers to manage their financial demands without the restrictions of conventional credit.\u201d\nThe post Adyen and Affirm Expand Partnership to UK appeared first on PYMNTS.com.", "date_published": "2025-03-20T06:59:15-04:00", "date_modified": "2025-03-20T06:59:15-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2022/07/Affirm-SeatGeek-partnerships-BNPL.jpg", "tags": [ "Adyen", "Affirm", "Affirn", "BNPL buy now pay later", "EMEA", "News", "Partnership", "PYMNTS News", "uk", "What's Hot", "BNPL" ] } ] }