JPMorgan, BofA, others challenge the BNPL space

Traditional banks are officially coming for the Buy Now, Pay Later (BNPL) market share. Major players like JPMorgan Chase, Bank of America, and Citi are rolling out their own installment payment products. For retailers, this means the 'fintech-only' era of BNPL is over. You will soon see more customers wanting to use their existing bank apps or credit cards to split up purchases. These banks have massive customer bases and deep pockets. They want to move beyond simple credit cards and capture the younger demographic that prefers predictable monthly payments. From a business operator perspective, this could lead to more stable financing options for your customers. Traditional banks often have lower costs of capital than fintech startups. This might eventually lead to lower merchant fees or higher approval rates for prime customers. However, the experience needs to be seamless at your checkout. Banks are currently focusing on 'post-purchase' installment plans where customers split the bill after the swipe. This is different from the integrated checkout experience provided by Affirm or Klarna. Keep an eye on which banks are offering 'pre-approved' limits. These will be the most effective at driving high-ticket sales in your store.

Source: Banking Dive

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