Buy Now, Pay Later Transactions Surge Amid Economic Uncertainty
- Klarna extends its ‘buy now, pay later’ services to Adobe Commerce merchants
- BNPL transactions increased by 172% in the past year
- Apple shuts down its BNPL service and offers installment loans instead
- Half of BNPL customers use it for spreading cash flow, while 30% overspend with the option
- Financially fragile consumers rely on ‘buy now, pay later’ services
Klarna has extended its ‘buy now, pay later’ services to Adobe Commerce merchants as the popularity of these transactions continues to rise. According to Eeke de Milliano, head of global product at Stripe, BNPL volume increased by 172% in the past year. However, Apple has decided to shut down its BNPL service and will offer installment loans through debit and credit cards instead. A recent YouGov and Bankrate survey found that half of BNPL customers use it for cash flow management, while nearly 30% overspend with the option. The Federal Reserve Bank of New York reports that financially fragile consumers are increasingly relying on ‘buy now, pay later’ services as a regular payment method.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Klarna’s partnership with Adobe Commerce and includes relevant data on the growth of buy now, pay later services. It also mentions Apple’s decision to discontinue its BNPL service and includes statistics from a YouGov and Bankrate survey and Federal Reserve Bank of New York research. However, it lacks direct context about Petrosoft and c-store operators mentioned in the beginning, which may be misleading for readers.
Noise Level: 4
Noise Justification: The article provides relevant information about Klarna’s partnership with Adobe Commerce and the rise of buy now, pay later services. However, it also includes some unrelated information about Apple shutting down its BNPL service and a survey result from Bankrate and YouGov. The overall content is informative but could be more focused on the main topic.
Financial Relevance: Yes
Financial Markets Impacted: BNPL (Buy Now, Pay Later) services and companies like Klarna, Adobe Commerce, Stripe, and Apple are impacted.
Financial Rating Justification: The article discusses the growth of BNPL services and their impact on consumer behavior, as well as partnerships between companies like Klarna and Adobe Commerce. This directly pertains to financial topics such as payment methods and their usage in the economy.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in this article. It discusses the growth and usage of buy now, pay later services and partnerships between companies like Klarna and Adobe Commerce.
www.retaildive.com