APEXX Global, a Buy Now, Pay Later (BNPL) provider, announced early January 2022 launched in the United States as part of its international expansion.
“Payment service providers (PSPs) are grappling with the speed of change and providing their customers with the solutions they want in the markets they serve, especially among those in the BNPL industry,” said Rodney Bain, co-founder and chief strategy officer of APEXX Global, said in a statement. “At APEXX Global, we are confident in our ability to meet the fragmented and rapidly growing US demand for cutting-edge payment solutions through our unique platform of leading payment providers.”
The company’s expansion comes as BNPL continues to gain popularity in the United States and around the world. If you’re looking for alternative payment methods, consider taking out a personal loan to pay off high-interest debt. Visit Credible to find your personalized rate without affecting your credit score.
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BNPL transactions on the rise
BNPL transactions could reach $680 billion in volume by 2025, according to an Insider Intelligence report. That would mean a compound annual growth rate of 13.23% per year from the $285 billion the industry saw in 2018.
The rise in BNPL options stems from the rise in online shopping. While other payment methods can be made online or in-store, BNPL companies are used only for online transactions. These companies do not exchange any interest and spread the purchase amount into short-term payments.
As more consumers shop online, BNPL becomes more readily available. In fact, U.S. e-commerce sales grew 13.2% in Q3 2021 to $205 billion, according to the US Department of Commerce.
“The global B2C e-commerce market is expected to reach $6.54 trillion by 2023, and online shopping is one of the country’s most popular online activities, but poor payment experiences mean businesses e-commerce companies stand to lose billions in potential point-of-sale revenue due to outdated and cumbersome systems and processes,” Bain said.
If you need money to pay off debt, consider financing options like taking out a personal loan when interest rates are low. Visit Credible to compare multiple lenders at once and choose the one that suits you best.
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Regulators wary of BNPL
In the United States, regulators are become more careful BNPL products. In December, the Consumer Financial Protection Bureau (CFPB) sent orders to BNPL suppliers to collect risk information, and said it was concerned about rising debt, product regulation and the collection of data. There are also growing concerns about users’ understanding of the consequences if they do not make payments on time.
“Buy now, pay later is the new version of the old layaway plan, but with modern, faster twists where the consumer gets the product immediately but also gets the debt immediately,” he said at the time. CFPB director Rohit Chopra. “We have ordered Affirm, Afterpay, Klarna, PayPal and Zip to submit information so that we can report to the public on industry practices and risks.”
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