By Ray Birch
PALM COAST, Fla.—Buy now, pay later (BNPL) offerings have exploded in the last two years, but what’s the future of the solution that may someday rival credit cards, and should credit unions be offering their own BNPL deals to members and to consumers overall?
Many consumers have embraced the concept of BNPL, which offers easy credit and the opportunity to spread the cost of an item over several payments. So, how do CUs get past the membership hurdle to offer a seamless solution to match what the major players deliver to consumers?
There is concern, too, as the credit union grabs share—as reports indicate some consumers are overextending themselves with too many BNPL agreements at one time, even though the borrowing doesn’t appear on credit reports..
As CUToday.info has reported, the CFPB, too, is looking into BNPL, concerned it can be quick way for some Americans to fall into financial trouble.
To help readers get a better handle on the trends in BNPL, CUToday.info has compiled some of its recent reporting below:
BROOKFIELD, Wis.—If credit unions are to be successful with the rapidly growing buy now, pay later (BNPL) offerings, there are several steps they absolutely must takel, several analysts have told CUToday.info.
LOMBARD, Ill.—Buy now, pay later (BNPL) is a larger threat to credit card business than many had originally forecast, asserts one analyst, who believes the popular borrowing option is also a Trojan horse that will steal away younger members. But there may also be one “good opportunity” for CUs.
Why 1 Person Sees an Opportunity for CUs
ST. PETERSBURG, Fla.—Will buy now, pay later (BNPL) become credit unions’ new indirect lending channel?
Will BNPL Become As Commonplace As Plastic?
RANCHO CUCAMONGA, Calif.—Will buy now pay later (BNPL) services become as commonplace as using a plastic card?
CUs Need To Keep 'Clicks To Minimum'
SAN CARLOS, Calif.—Merchants like the slick, easy-to-use new buy now pay later (BNPL) services that are capturing the attention of consumers—and helping drive sales—but one expert is cautioning that as credit unions race to play in this space they must do so without adding clicks to the process.
Survey Suggests BNPL is Buy Now, Pay (the Piper?) Later for Both Consumers and Credit Unions
OMAHA, Neb.–A new survey shows just to what extent the popularity of buy now, pay later (BNPL) solutions is surging among consumers, but it also reveals potential pitfalls related in part to some of the industry's lenient approach to credit during the application process.
PSCU Member Forum Coverage: BNPL For Haircuts? How Long Before CFPB Seeks Closer Shave
LAS VEGAS—With buy now, pay later (BNPL) services being used by consumers for increasingly small purchases, even haircuts, how soon before the CFPB zeroes in on the fast-growing, new payment/financing alternative?
Citi The Latest to Push into BNPL Space With New Partnership
NEW YORK—Citi will become the latest major player to launch a buy now, pay later (BNPL) card when it rolls out a new offering dubbed “Spot” in Australia through a partnership with Diners Club.
Holiday Spending Data Show How Popular BNPL is Becoming
NEW YORK—Consumers’ reasons for seeking out buy now, pay later (BNPL) plans for recent holiday purchases varied, a new study reveals.
Study Suggests The Explosive Growth in Buy Now, Pay Later is Just Going to Keep Exploding
SAN FRANCISCO–A new study suggests the “explosive” growth of buy now pay later solutions (BNPL) will only continue to surge.
As BNPL Continues to Surge, Analysts Begin Urging Some Caution
NEW YORK—Buy now, pay later (BNPL) options are becoming increasingly popular, but analysts are warning of default risks given the lack of credit checks and “opaque” debt reporting.
5 Buy Now, Pay Later Firms Getting a Look Now, Potential Consequences Later from CFPB
WASHINGTON—Five companies within the rapidly growing buy now, pay later (BNPL) market are under scrutiny from the Consumer Financial Protection Bureau.
Already Growing Quickly, Moody’s Forecasts Even More Growth for BNPL
NEW YORK–While its growth has been strong, a new forecast from Moody’s suggests buy now, pay later (BNPL) solutions have “significant growth potential” due to the appeal to both consumers and retailers.