Gen Z and payments titans take to BNPL, but so do watchdogs

the The BNPL wave will keep growth: Almost a third of US buyers will use BNPL as a payment option in the coming year, we expect. Gen Z digital shoppers are leading the charge, with 44.1% is expected to use the technology in 2022. However, more than a third of Gen Y digital shoppers and almost a quarter of Gen Xers will also use BNPL credit options. While BNPL currently composes approximately 1% US retail e-commerce dollars – by our calculations based on BNPL estimates from consulting firm Oliver Wyman and our e-commerce forecast – rapid growth means merchants are seeing an opportunity to seize sales. Incumbents, on the other hand, see the fintech-dominated space as a threat to basic offerings, such as credit cards; chase away will spend “anything [it has] to spend ”to counter this threat, according to CEO Jamie Dimon.

Many of the largest banks are already doubling their BNPL offer: Look for more to follow their lead in 2022. Participants will offer new features to help capture growth. A capital letterthe next launch of could set off the tide. Application programming interface (API) and open banking services from major networks such as Visa and MasterCard can also open the valves. Their simple implementation over large networks helps increase acceptance of BNPL. Meanwhile, neobanks, such as To improve and Revolution, combine BNPL with digital money management tools, thus advancing innovation.

Higher risk attracts attention and threatens to slow growth. BNPL can attract people with low credit as well as consumer protection watchdogs. In what could be an attempt to anticipate regulation, industry executives have suggested a set of standards, including clearer penalties and data sharing that limit double deduction. KlarnaThe UK’s adoption of more transparent marketing, a new ‘pay now’ option – which has also just been launched in the US – and stricter credit checks, could be a sign of what’s going to happen.


BNPL’s lending and disclosure practices will be subject to scrutiny by the Consumer Financial Protection Bureau (CFPB). The office has already warned consumers of the risks of using BNPL, and under the leadership of Rohit Chopra, a strong consumer advocate, the office should take an aggressive stance to ensure BNPL solutions comply with regulations. existing in terms of consumer protection.

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