đź“– BNPL is expanding its scope, and banks are finding their way into the narrative | Tearsheet
The Buy Now, Pay Later (BNPL) industry is expanding beyond its traditional retail focus into new sectors like travel, exemplified by Expedia Group partnering with Upgrade's Flex Pay to offer installment plans for cruise bookings. Simultaneously, major financial institutions are increasingly embracing BNPL. Banks like JPMorgan Chase and Citi are either partnering with established BNPL providers (like JPMorgan with Klarna and Affirm) or developing their own solutions (like Citi's Flex Pay integration with Apple Pay). This growing involvement from traditional banks is reshaping how Wall Street views alternative lending, with banks leveraging their existing customer trust and infrastructure to compete in the BNPL space while established BNPL providers expand their reach through strategic partnerships.
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▶️ Foiling the Invisible Heist: The New Banking Playbook to Land and Expand Commercial Relationships through Digital Banking | Breaking Banks Podcast
Traditional banks are facing a "quiet revolution" as they're gradually being displaced from businesses' daily financial operations by more streamlined, embedded banking solutions that integrate directly into business operating systems. This displacement, referred to as "The Invisible Heist," is happening subtly through everyday business transactions like pizza orders, childcare payments, and invoice processing. In response, the episode features insights from Jorge Garcia (Founder/CEO of Linker Finance) and Samer Saab (SVP of Product for Alloy Labs), who explore how banks can counter this trend by identifying overlooked opportunities and reimagining their approach to commercial relationships through digital banking—essentially creating a new "playbook" to reclaim and expand their relevance in the commercial banking space.
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đź“Š Pay-by-Bank Interest Jumps 72% With Incentives, New Report Shows | PYMNTS
A new report by PYMNTS Intelligence and Trustly reveals that interest in pay-by-bank (open banking) payments increases by 72% when consumers are offered incentives like cash-back and loyalty benefits. Despite this potential, 56% of consumers remain unfamiliar with the payment method, highlighting a significant awareness gap. The study, based on a survey of 2,225 U.S. consumers, identifies Generation Z and high-income individuals as particularly receptive demographics, especially when incentives are offered. Beyond retail, current pay-by-bank users show interest in expanding its use to services like ridesharing and betting, with 39% appreciating its ease of use.
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