Aditya Anne’s Post

📣 Affirm Expands to the UK! Exciting news in the Buy Now, Pay Later space: Affirm is officially launching in the UK—my old stomping ground! They're stepping in as a fresh player, aiming to shake up the BNPL sector with a focus on responsible lending practices. With all the scrutiny from regulators, Affirm is positioning itself as a "responsible alternative." Offering both interest-free and interest-bearing loans - with no late fees - Affirm underwrites every transaction individually to make sure consumers can handle their repayments. This launch comes at an interesting time, with the UK's Financial Conduct Authority and Consumer Credit Act tightening the screws on BNPL lenders (something I'm keeping a close eye on as US regulators often take inspiration from the UK). Affirm's individualized underwriting approach could be exactly what aligns with these new expectations. By emphasizing consumer responsibility, Affirm's trying to stand out in a competitive and increasingly regulated market. With regulators and consumers both wanting safer ways to extend credit, this could be the move that sets them apart. - CNBC Article - https://lnkd.in/ghVHYieS #BNPL #Affirm #Fintech #ConsumerFinance #Regulation #UKMarket #FinancialServices #ResponsibleLending

As Affirm enters the UK market, it’s clear they’re stepping into more than just a new territory – they’re entering a regulatory transformation in the Buy Now, Pay Later (BNPL) sector. With the UK’s Financial Conduct Authority (FCA) primed to bring BNPL providers closer to traditional consumer credit standards by 2026, Affirm’s launch here comes at a pivotal time. Founded by Max Levchin, a PayPal co-founder, Affirm has already gained traction in North America through partnerships with major players like Amazon, Shopify, and Apple. Yet, as Affirm begins its UK journey with brands like Alternative Airlines, it faces a unique opportunity to set itself apart. Notably, Affirm won’t impose late fees or hidden charges on its UK users – a stance that contrasts with industry rivals. The BNPL industry has faced scrutiny for its impact on consumer spending habits and debt, especially with companies like Klarna experiencing volatile valuations. As Affirm establishes itself here, it will need to navigate these perceptions and align with regulatory expectations. While challenging, this entry allows them to build local relationships and establish credibility early. 📊 At @ReachX, we know that navigating regulatory landscapes while expanding is critical for sustainable growth. As regulations evolve, so do the strategies for market entry and operational risk. It’s a reminder that firms in financial services must balance growth with compliance, always prioritising consumer trust. How do you think Affirm’s no-fee model will fare in the UK? Will it resonate, or is there a tougher road ahead in light of regulatory shifts? Read more about the news here: https://lnkd.in/dZdniPpC #BNPL #UKFintech #MarketRegulation #FinancialInnovation #ReachX

Affirm's entry into the U.K. marks a significant expansion for the BNPL giant, opening new doors in a dynamic e-commerce market eager for flexible payments. With plans to bring interest-bearing options that avoid compounding interest and eliminate late fees, Affirm aims to set a new standard in consumer-friendly credit. As regulatory changes loom, Affirm’s strategic approach offers it the time to gain consumer trust and secure a foothold in the U.K. market. #BNPL #Affirm #UKExpansion #FlexiblePayments #ECommerce

Klarna labels CFPB BNPL rule 'baffling'. The US Consumer Financial Protection Bureau's new rule on buy now, pay later lenders has received a mixed reception from industry players, with Affirm welcoming the outcome but rival Klarna calling it "baffling". The CFPB published its interpretive ruling yesterday, declaring that BNPL lenders should be treated in the same way as credit cards. This means that providers must give consumers some key legal protections and rights that apply to conventional credit cards. These include a right to dispute charges and demand a refund from the lender after returning a product purchased with a buy now, pay later loan. Affirm says it is "encouraged that the CFPB is promoting consistent industry standards, many of which already reflect how Affirm operates, to provide greater choice and transparency for consumers". Klarna also says it welcomes "proportionate" regulation and that the new rule does not require any major changes to its business. However, the Swedish firm also argues that "trying to regulate BNPL like a credit card is like comparing apples with oranges. So today’s announcement is confusing". Source: https://lnkd.in/e4scr-9c Sign up for more news updates like this in our daily newsletter: https://lnkd.in/eskQx7Ym #fintech #payments #bnpl #digitalpayments #financialtechnology #financialservices #fintechnews #financialsolutions 

BNPL – Spin, Spin and yet more Bluster….   You have to give BNPL some credit, they never give up with the spin & bluster   Here are some of the current ridiculous claims - “BNPL has fundamentally reshaped the consumer credit sector” “Australia leads the world in BNPL innovation..” “It has changed the way we buy things, the way we view credit…” “BNPL didn't exist when our current credit laws were introduced…”   FACTS MATTER   BNPL is not new – it’s been around for over 350 years – 200 years in USA   BNPL has no size or scale which is crucial in payments –   example Australia key sales   Debit cards – $571 bn Credit/charge cards – $420 bn ATMs – $104 bn BNPL - $17 bn   TOTAL $1.44 Trillion   BNPL is 16% of ATM cash withdrawals or less than half a percent of all retail payments after 10 years   Apps have not reshaped anything and are not 'innovation' ……first BNPL apps 2005 in Europe with Afterpay Holland (find the name interesting ?) and Klarna – Asia followed in 2010, Australia joined late in 2014 with Afterpay then ZIP copied 2015   Australia HAD a BNPL boom in 2021 and now the BUST – 2021 with 38 start-ups with 12 public stocks worth $58 bn - now only 6 left of any size (2 public) with $2 bn market cap - that’s $56 billion lost!      SMALL PAYMENT NICHE   BNPL is so small it’s irrelevant - their latest 'product'…. issue credit/debit cards.. so much for "crushing banks" and "killing off cards" or “reengineering finance”....their past spin looks like nonsense now, so is the current response to regulations in many countries   Now this small niche faces regs which will add significant cost, slow them down and actual supervision from regulators, what will they find?   INTEREST RATES & REGULATION CHANGE EVERYTHING   Higher interest rates ‘kill’ BNPL apps as they must fund the gap between paying merchants and being paid by consumers – this gap has seen funding cost increase by 3x, given none of these apps make profits it more bad news as rates will stay high well into 2025   The problem with unregulated BNPL is it’s a very high-volume low margin business that only works when interest rates are low and profits don't matter - add regs and it’s a real problem, the ultimate regulatory arbitrage, which is now shut down!   The biggest issue in Australia, when RBA forces BNPL is adhere to surcharge laws, which RBAs own research says will dent sales considerably – 50% users will stop using it..   “RBA in March 2021 detailed its research  -- 50% of BNPL consumers say a 4% surcharge will make them switch to other payment type i.e. debit cards - 10% would cancel and not buy - while 40% will keep using BNPL” The market is now dominated by bigger players PayPal, Amazon and Apple in USA     https://lnkd.in/g-3GFF8e

#BNPL competition has been heating up from both incumbent providers, such as Klarna, and new BPL entrants, such as credit unions. Even Visa has found ways to offer BNPL on its Flexible Credential product through a partnership with Affirm. That's forcing smaller BNPL firms to find ways to differentiate themselves. Niche BNPL #fintech Sunbit is hoping that its co-branded credit card will set it apart from competitors with larger transaction volumes and a wider merchant base. Read how in my latest with American Banker. https://lnkd.in/e3qKArGC

Is Buy Now Pay Later starting to die off? With companies like Openpay shutting their doors and now a big bank like Natwest halting their BNPL operations just 2 years after launching, there's some doubts starting to spread across the industry... Naturally during a global downturn, customers are now finding it more difficult to keep up with repayments, while high interest rates and rising defaults are making it tough for BNPL providers to stay afloat. That being said, it seems like Klarna's market dominance is the biggest cause of all, with the Swedish Fintech processing over 2 Million transactions a day. Read Below... #fintech

CFPB issues a new regulation about BNPL in the US, and Klarna is not happy about it The US Consumer Financial Protection Bureau (CFPB) has introduced a new rule that equates Buy Now, Pay Later (BNPL) lenders with credit card providers, sparking varied reactions from industry leaders. Affirm has welcomed the new regulations, while #Klarna has labeled them "baffling." The CFPB's interpretive ruling mandates that BNPL lenders provide consumers with key legal protections and rights similar to those for credit card holders. These include the right to dispute charges and demand refunds after returning a product purchased through BNPL. The BNPL has been rapidly expanding in the #fintech market, offering consumers an alternative to traditional credit cards. However, this growth has brought increased scrutiny from regulators who aim to ensure consumer protection. The CFPB's ruling is designed to promote consistent industry standards and increase consumer transparency and protection. Affirm views this as a positive step, aligning with its existing practices. Klarna, however, argues that the ruling fails to recognize the fundamental differences between BNPL and credit cards, potentially complicating the regulatory landscape for BNPL providers. Klarna's statement highlights that other countries like the UK and Australia have taken a different approach by acknowledging these differences. Klarna hopes the CFPB will reconsider and tailor regulations to better fit the unique characteristics of BNPL products. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://t.ly/s541W   - Substack: https://lnkd.in/dzfGJzmW

http://dlvr.it/TDcjGW In the post-pandemic world, Buy Now, Pay Later (BNPL) has become a major force, accounting for 13% of eCommerce sales! It's time for traditional banks to innovate and embrace this growing trend! #BNPL #Fintech

The US payment market offers a $200 billion growth opportunity between 2022 and 2027. Discover how companies can navigate this space in my article for @InternationalBanker. Read more. https://lnkd.in/gUde34E6 #MarketGrowth #PaymentTrends #Fintech