The rise of buy now, pay later (BNPL) financing has become nearly impossible to ignore in recent months. Consumer demands have caused merchants and financial institutions to offer a multitude of financing options at the point-of-sale.
News of large merchants entering partnerships with BNPL providers are now daily occurrences. Klarna, a BNPL provider, reported that it partners with a merchant every 8 minutes. This has created a new sense of urgency within the market as PayPal, Ally Lending, Visa, and Fiserv have all recently launched BNPL solutions.
These new developments reveal just how imperative it will be for merchants to embrace BNPL, why financial institutions should be evaluating their own BNPL strategies, and why BNPL is here to stay.