increasingly popular buy now, pay later Services viewed by credit-card issuers as theft of market share debit cards and cash payments, Morgan Stanley said in a report on Monday.
As Morgan Stanley reports, executives from American Express Company, Capital One Financial Corp, Synchrony Financial and other firms mentioned buy-now, pay-later products more than five dozen times during investor presentations last week. Products allow consumers to split their purchases into scheduled payments.
“If you listened to last week’s conventions, you heard a lot of fireworks when the conversation turned into BNPL, “Analysts Betsy L. Grecek, Manan Gosalia, Jeffrey Adelson and Ryan Kenny said in the report. “The cool webcasts belie the fighting words of the incumbents.”
Executives said they are studying the issue — and in some cases developing their own programs. For example Capital One. Will begin testing the buy-now, pay-after product with existing customers later this year. chief executive officer Richard Fairbanks Argued that credit card issuers and lenders may be able to offer merchants better deals than existing services.
Buy now, pay later programs have become especially popular among Gen Z and millennial shoppers, who may be skeptical. Credit Card, and prefer fast, cheap payments with no interest charges and minimal credit checks. Retailers pay providers a fee for each transaction.
According to a Morgan Stanley report, Brian Wenzel, Chief Financial Officer of Synchronous, said during his presentation that about 75% of transactions are funded from debit accounts. Doug Buckminster, AMEX’s group president for global consumer services, said most of the growth in programs comes from customers with modest credit quality, with purchases made in four payments.
The craze — which includes programs offered by Klarna Inc., Afterpay Ltd. and Affirm Holdings Inc. — has sparked a push into buy-now, pay-later services by giants including PayPal Holdings Inc. and Apple Inc., which are on a new service. doing work. Using global sales by Goldman Sachs Group Inc., buy now, pay later last year is expected to reach $181 billion next year with a total of $93 billion, according to such programs as the growth of e-commerce in the US. Estimated to be 3%. for Bloomberg Intelligence.
As Morgan Stanley reports, executives from American Express Company, Capital One Financial Corp, Synchrony Financial and other firms mentioned buy-now, pay-later products more than five dozen times during investor presentations last week. Products allow consumers to split their purchases into scheduled payments.
“If you listened to last week’s conventions, you heard a lot of fireworks when the conversation turned into BNPL, “Analysts Betsy L. Grecek, Manan Gosalia, Jeffrey Adelson and Ryan Kenny said in the report. “The cool webcasts belie the fighting words of the incumbents.”
Executives said they are studying the issue — and in some cases developing their own programs. For example Capital One. Will begin testing the buy-now, pay-after product with existing customers later this year. chief executive officer Richard Fairbanks Argued that credit card issuers and lenders may be able to offer merchants better deals than existing services.
Buy now, pay later programs have become especially popular among Gen Z and millennial shoppers, who may be skeptical. Credit Card, and prefer fast, cheap payments with no interest charges and minimal credit checks. Retailers pay providers a fee for each transaction.
According to a Morgan Stanley report, Brian Wenzel, Chief Financial Officer of Synchronous, said during his presentation that about 75% of transactions are funded from debit accounts. Doug Buckminster, AMEX’s group president for global consumer services, said most of the growth in programs comes from customers with modest credit quality, with purchases made in four payments.
The craze — which includes programs offered by Klarna Inc., Afterpay Ltd. and Affirm Holdings Inc. — has sparked a push into buy-now, pay-later services by giants including PayPal Holdings Inc. and Apple Inc., which are on a new service. doing work. Using global sales by Goldman Sachs Group Inc., buy now, pay later last year is expected to reach $181 billion next year with a total of $93 billion, according to such programs as the growth of e-commerce in the US. Estimated to be 3%. for Bloomberg Intelligence.
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