Credit card and payment companies are competing for part of the growing BNPL market – TechCrunch

Buy now, pay later is to stay here.

A year ago, the biggest players in this area were companies that were founded solely to offer consumers the option of paying in installments at the point of sale. Sweden’s Klarna, Australia’s Afterpay, and US-based Affirm were the top names associated with BNPL.

But the landscape is now very different as more and more companies recognize the opportunity and fight for a piece of the pie. PayPal spent $ 2.7 billion on Japan’s Payy last month to crack the Asian market. In early August, Square announced it was acquiring Afterpay as part of a $ 29 billion deal. Even Apple is supposed to get into the BNPL game.

In today’s BNPL space, a symbiotic relationship is slowly developing between traditional financial institutions, upstart payments and business leaders. As credit card and payment companies view BNPL as a new growth opportunity, established companies like Klarna and Affirm are looking for ways to make their installment loans available to more consumers.

The bigwigs step into the fray

Now that consumers are becoming familiar with the BNPL services, the major credit card providers are taking steps to ensure they are not left behind. Visa said Wednesday that a “growing list” of issuers, buyers and fintechs are using its technology to offer BNPL options to their customers.

In a statement, Mary Kay Bowman, Visa SVP and global leader for payments and platform products, said the company has “passionately embraced BNPL” for years “because it expands choice and convenience for buyers and sellers alike.”

“If buyers prefer a BNPL fintech solution, we’re here to make it happen,” she said. “If they want an option from their banks, we’ll help them offer that too.” Interestingly, Visa announced today that it has signed a “global branding deal” with BNPL giant Klarna to expand and scale into multiple markets to accelerate.

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