United States Buy Now, Pay Later Market Report 2021: What Will Happen to the BNPL Interest-Free Model when the Prime Rate Rises?
Dublin, May 20, 2021 (GLOBE NEWSWIRE) -- The "Buy Now, Pay Later: Gaining Scale and the Disrupting Status Quo in Lending" report has been added to ResearchAndMarkets.com's offering
This research explains the current market, discusses the strengths, weaknesses, opportunities, and threats to fintech, and explains the business and cashflow of this emerging credit option.
The research compares both consumer and merchant costs in comparison to credit cards. It dispells the claims that the product is a cheaper option for buyers and sellers. Research also covers the liberal credit policies used to gain scale, and suggests that fintechs consider tightening credit policies so that losses do not cannabalize profits.
"BNPL is not the "new thing" in lending; it is a modernized version of retail finance. There is certainly a high appeal, but with limited credit policies, consumers need to self-govern their retail purchasing so that they do not overextend themselves financially," comments Brian Riley, Director, Credit Advisory Service
Riley continues, "Financial institutions and other players in the credit cycle need to pay attention to the way fintechs aggressively book accounts. Fintechs should not compromise their credit standards, but the rapid take-up indicates that credit card issuers must provide access to thin credit files, and watch customers mature. Fintechs also need to think beyond the single transaction and look at the way banks manage a customer's lifecycle."
Highlights of the research note include:
Forecasted U.S. volumes through 2024, when they will exceed $100 billion
Placing the merchant at the center of the relationship, not the consumer
What will happen to the BNPL interest-free model when the prime rate rises
A discussion on interchange versus merchant discount and why credit cards can be cheaper
Market capitalization and why fintechs continue to lose money on BNPL
Key Topics Covered:
1. Executive Summary
2. BNPL: The Latest "Thing" Is Not So New
Pandemic Creates Rapid BNPL Adoption
Emphasis on Sales, Not the Consumer's Ability to Repay
BNPL Lending: New Lenders Capitalize on Consumer Material Aspirations with Low-Cost Loans
Revenue Dynamics: No Interest BNPL Loans Sound Cheaper, but Financing by Credit Card is Not Much More Expensive
Revenue Dynamics: BNPL Drives Retail Sales Volumes, but the Merchant Benefit Is Financially Diminished
3. Current Global Market Dynamics Foster the BNPL Market
Market Growth and BNPL Lender Valuation Should Interest Every Banker
Consumer Appeal for BNPL is Higher for Younger Age Segments
More Important than just BNPL, Financial Institutions Lose Ground to Fintech Lending
4. Decomposing BNPL Lending: a SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
5. Market Changes and What Established Participants Should Consider
BNPL-Before the Transaction
6. Advice for Industry Participants
Merchants
Payment Networks
Payment Acquirers and Processors
Traditional Credit Providers
7. Summary
8. References
Companies Mentioned
Afterpay
American Express
Avant
Bluevine
Capital One
Chase
Citi
Credit Intelligence
Discover
Dough Limited
Fatfish Group
FICO
General Electric Credit
GreenSky
Household Finance
Humm Group
IouPay
Kabbage
Klarna
Laybuy
Lending Point
LendingClub
Margeta
Mastercard
OnDeck
Openpay
OpyPay
PayPal
Payright
Petal Card
Prosper
QVC
Sezzle
SoFi
Splitit
Square
Synchrony
TD Bank
TSYS
Visa
Zebit
Zip
Zoot Solutions
For more information about this report visit https://www.researchandmarkets.com/r/i819xx
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