More popular, purchasing services – later seen by credit card publishers as stealing market share from debit cards and cash payments, said Morgan Stanley in a Monday report.
Executive of American Express Co., Capital One Financial Corp., Synchrony Financial and other companies mention buying products – now more than five dozen times during the investor presentation last week, according to Morgan Stanley’s report.
This product allows consumers to divide their purchases into scheduled payments.
“If you listen to the conference for the past week, you hear a lot of fireworks when the conversation turned to BNPL,” Betsy L.
Graseck analyst, Manan Gosalia, Jeffrey Adelson and Ryan Kenny said in the report.
“Calm webscast clears the words of battle from petellings.” The executive said they were studying the problem – and in some cases developing their own programs.
One capital, for example.
Will start testing the buy-present product, payment later with existing customers this year.
Chief Executive Officer Richard Fairbank argues that issuers and credit card lenders may be able to offer better offers to traders than existing services.
Buy-now, the payment program – later has become very popular between genes Z and millennium buyers who might be skeptical about credit cards, and prefer fast, cheap payments without interest costs and minimal credit checks.
Retailers pay the cost provider for each transaction.
About 75% of the transactions were funded from debit accounts, the Head of Financial Officer Synchronizing Brian Wenzel during his presentation, according to the Morgan Stanley report.
Most of the growth in the program with purchases carried out in four payments comes among customers with marginal credit quality, said Doug Buckminster, AMEX group president for global consumer service.
The Craze – which includes programs offered by Klarna Inc., Afterpay Ltd and Afirm Holdings Inc.
– has encouraged encouragement to current purchasing services, payments later by Giants including PayPal Holdings Inc.
and Apple Inc.
who work on new services supported by Goldman Sachs Group Inc.
Global sales use a Buy-Now, pay – then numbered $ 93 billion last year with the potential to reach $ 181 billion next year, with these programs it is estimated to take into account 3% e-commerce in the US, according to Bloomberg intelligence.