PayPal7 has claimed the top spot of “Buy Now Pay Later” providers. In a recent earnings call, CEO Dan Schulman said that since its launch, over 25 million consumers have used the company’s BNPL services – including its “Pay in 3” installments plan – and over 280,000 online merchants display the option at checkout.
“As a result of this robust growth, we believe we have become the largest Buy Now Pay Later provider in the world,” Schulman said8.
But how long will it keep the lead? It faces strong competition from Apple, believes Global Data analyst, Maddy Irwin9.
“Apple is likely to have a competitive advantage over other BNPL providers, as it will be easy for existing Apple Pay and Apple Wallet users to adopt these services. Furthermore, Apple has a huge existing user base,” she said.
“Big Tech and large payment providers can seamlessly incorporate BNPL into their platforms whether they’re profitable or not forcing fintechs with unsustainable revenue models out of the market. For Visa and Apple, BNPL does not need to be profitable and is merely an incentive to keep existing customers in their ecosystems.”
Amidst the cost-of-living crisis, could a BNPL option incentivize your customers at checkout? Find out with our guide to the leading payment solutions.