Credit card and payment companies compete for a share of BNPL’s growing market – TechCrunch

Buy now, pay later is here to stay.

A year ago, the biggest players in the space were companies founded solely to offer consumers the ability to pay in installments at the point of sale. Sweden’s Klarna, Australian Afterpay and American Affirm were the main names associated with BNPL.

But the picture looks very different now that more companies are recognizing the opportunity and fighting for a slice of the pie. PayPal spent $ 2.7 billion last month for Japan’s Paidy in an effort to break out of the market in Asia. In early August, Square announced plans to acquire Afterpay in a $ 29 billion deal. Apple is even said to be getting into the BNPL game.

The current BNPL space is experiencing a slow emergence of a symbiotic relationship between traditional financial institutions, new payments, and leading companies. As payment and credit card companies view BNPL as a new growth opportunity, traditional companies like Klarna and Affirm are looking for ways to make their installment loans available to more consumers.

The big shots enter the fray

Now that consumers are comfortable with BNPL’s services, the big credit card providers are taking steps to make sure they are not left behind. Visa said Wednesday that a “growing list” of issuers, acquirers and fintechs are using its technology to offer BNPL options to their clients.

In a statement, Mary Kay Bowman, Visa Executive Vice President and Global Head of Platform Products and Payments, said the company has been “enthusiastically embracing BNPL” for years “because it expands choice and convenience for both buyers and sellers. “.

“If buyers prefer a BNPL fintech solution, we are here and we enable it,” he said. “If they want an option from their banks, we are also helping to offer it.” Interestingly, Visa said today that it has signed a “global brand agreement” with BNPL giant Klarna to accelerate its expansion and scale in various markets.

Previous John Hood: Mortgage discrimination complaints redundant (copy) | Editorial columnists
Next Conversation on wine: free-spirited and artisanal