3 Buy Now Pay Later companies to watch out for in 2022

By Joy Dumasia

Buy Now Pay Later is revolutionising the way customers make purchases online and even in-store by making payments more flexible and convenient for shoppers. Buy Now Pay Later FinTech companies have seen an increase in popularity over the past few years since they were introduced in the UK back in 2014.

Choosing buy now pay later at the checkout of a participating retailer means the bill will be paid for in full by the BNPL provider. That leaves the customer required to repay them, usually in instalments over a short-term fixed-payment schedule, and interest-free.

The following are 3 Buy Now Pay Later companies to watch out for in 2022:

• Klarna

Klarna is a Swedish bank that provides online financial services such as payment solutions for online storefronts, direct payments, post-purchase payments, etc. Klarna is considered the most valuable FinTech in Sweden, with capital standing at $1 billion. The country currently hosts around 48 startups with total funding amounting to $2 billion. It was founded in 2005 by Sebastian Siemiatkowski (CEO), Niklas Adalberth, Victor Jacobsson.

Recently, IBS Intelligence reported that Klarna, a global retail bank, payments and shopping service, recently revealed new data which challenges popular misconceptions about the company’s consumers. In the debate on Buy Now Pay Later, women are at greater risk of getting into debt with this growing way to pay. However, according to new data, women spend less per Klarna order, are more likely to make early payments, and are less likely to fall into default than their male counterparts.

• Laybuy

Established in 2017, Laybuy is a buy now, pay later service that partners with retail merchants globally. It is a ‘risk-free’ solution that takes responsibility for all the credit risk for the weekly payments. Laybuy Boost assist customers who want to purchase items beyond their credit limit by allowing them to pay the difference up-front and spread the rest of their payments as they normally would.

IBS Intelligence reported that Laybuy, a Buy Now, Pay Later provider, announced a partnership with Manchester United with an aim to offer a new and interest-free payment option to help customers buy merchandise and show support for the club. Laybuy, via the collaboration, aims to make football more accessible to fans across the UK.

• Payl8r

Manchester-based Payl8r offers a convenient and modern payment method for goods and services online and in-store. It aims to provide its customers with an attractive and beneficial alternative to credit cards. Payl8r’s ease of use and range of financing options encourages customers to purchase more of the products they desire.

Payl8r’s lending is based on affordability rather than credit history, meaning they lend to an audience comprising credit, thin credit, previous bad credit, students, benefits. The company’s typical interest rates range around 2% per month.

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