![]() ![]() It is also another example of just how competitive the BNPL space is getting, especially here in the U.S. But it is illustrative of the measures that financial services companies - incumbents and fintechs alike - are taking to make their installment loans available to more consumers. So the fact that Klarna has now created its own card is not entirely shocking. ![]() The credit card giant’s chief product officer Craig Vosburg said at the time: “At the heart of it, payments come down to choice - and people want more from their money with greater flexibility and control in how they pay and where they shop.” And Mastercard, too, last year announced its own BNPL offering: Mastercard Installments. But last year, Visa said that “a growing list” of issuers, acquirers and fintechs were using its technology to offer BNPL options to their customers. This is interesting because historically, buy now, pay later has focused on online shopping or people opting to pay in installments at the point of sale. The card, according to the company, brings Klarna’s “Pay in 4” service to a physical Visa card. The company, which last year was valued at $45 billion but has since had its own share of struggles, said it teamed up with Marqeta to launch a new Klarna Card in the U.S. Levchin is vocal about the fact that Affirm “was conceived as something of an anti-credit card.” The company went public last year and despite a dramatically lower stock price is showing recent signs of continued strength.Īlso this past week, Sweden’s Klarna announced a new partnership of its own. For its part, Stripe is able to offer prospective, and current, customers more payment flexibility.Īffirm - which was founded by PayPal co-founder Max Levchin - has built technology that can underwrite individual transactions, and once determining a customer is eligible, it can offer them the option to pay on a biweekly or monthly basis. It processes hundreds of billions of dollars each year for “every size of business - from startups to Fortune 500s.” And this gives Affirm an opportunity to generate more revenue as it makes money in part on interest fees. The deal is significant for Affirm because Stripe, which was valued at $95 billion last year, has “millions” of customers globally. This means that a whole slew of companies that were not previously able to offer their customers the option to pay in installments, now can. businesses that use Stripe’s payments tech. This past week, San Francisco–based Affirm announced it was making its buy now, pay later technology available to U.S. As such, companies that offer that technology to merchants are unsurprisingly growing more competitive with each other.Ĭase in point. To get this in your inbox, subscribe here.īuy now, pay later has become nearly ubiquitous here in the U.S. Welcome to The Interchange, a take on this week’s fintech news and trends. ![]()
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