How to use BNPL to strengthen revenue lines
First, looking for BNPL to continue to grow
“Most consumers have debit and credit cards in their digital wallets today. In the coming years, these will share space with BNPL cards, which will become just as commonplace. As consumers begin using BNPL more frequently, possibly from more than one provider, tools that track combined cash flow requirements will become more necessary to keep consumers from exceeding their total obligations in the coming two or three months,” said Ruby Walia, Senior Advisor for Digital Banking, Mobiquity.
Second, don’t expect FINTECH to rule BNPL forever
“Today, BNPL is dominated by fintech players. That will undoubtedly change. Banks and credit card networks like MasterCard and Visa will establish a presence to fight the revenue erosion they’re experiencing. And big tech players like Apple will jump in because this is a logical new feature to add to their payment capabilities in Apple Pay and Apple Wallet,” said Walia.
Third, look for streamlining in how retailers use BNPL for branding
“Another source of innovation could be retail merchants who have loyalty programs. Many already let customers pay with Affirm or other fintech BNPL providers, but those programs are a little disjointed. Typically, the merchant doesn’t share customer data with the BNPL provider and has to accommodate their branding within the merchant’s shopping experience. As this space matures, merchants could offer a co-branded BNPL service (which better protects their branding) connected to their loyalty programs, just as they already do with co-branded credit cards. Airlines and hotels could do this too,” said Walia.