A PAYMENT EXPERIENCE IS A WEAPON OF MASS CONVERSION

CONTEXT

Where consumer credit existed for more than 20 years, payment facilities (Buy Now Pay Later…) all gained traction since Covid-19. Today, more and more companies are entering the payment facilities market, resulting in massive fundraising. We are at the meeting point between a Real Customer Need (smoothing out expenses in a context of economic uncertainty) and start-ups that have fully invested in this sector. This market has been shaped by pure-players, who are accelerating and gaining market share in unprecedented ways, without the hindrance of physical stores. These pure-players reinvented payment facilities via simple and fluid paths, which are completely lacking in the offline world.

BNPL DEFINITION

At checkout, consumers benefit from a “Buy Now Pay Later” option, using a fractional payment. In most European countries, below 90 days (i.e., payment in 3 to 6 times), there is no regulation that evaluates or protects the trade including customer solvency (called “scoring”). Beyond 90 days, consumer credit legislation applies.

MARKET OVERVIEW

In November 2021, Shein signed with Klarna. Ingka invested in Jifiti in the summer to offer BNPL payment in-store.…