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☆ The real reason you're using 'Girl Math' isn't as funny as the TikTok trend would make you think
▼ + stars: | 2023-09-06 | by ( Kai Xiang Teo | ) www.businessinsider.com time to read: +5 min

"Girl Math" is the humorous TikTok trend where users justify expenses with tricks. "Girl Math" may just be "Buy Now, Pay Later" in disguise, the experts said. "To me, the popularity of the "Girl Math" trend indicates a lot of pent-up guilt around our purchases," said Barrow. That's why it's important to disclose when "Girl Math" is humor instead of fact, said Sara Samuels, a wealth management advisor at Northwestern Mutual. AdvertisementAdvertisementFinancial educator Ellis even suggests setting aside money for savings or an emergency fund every time you make a "Girl Math" purchase.

Persons: Sam James, —, Ashley Morris, Isabel Barrow, Barrow, Erin Ellis, Ellis, Edelman's Barrow, Sara Samuels, Morris Organizations: Service, Consumer Financial Protection Bureau, Philadelphia Federal Credit Union, Northwestern Mutual Locations: Wall, Silicon, Philadelphia, Barrow

☆ Buy now, pay later firm Klarna cuts losses in first half but falls short of profit
▼ + stars: | 2023-08-31 | by ( Ryan Browne | ) www.cnbc.com time to read: +4 min

Swedish buy now, pay later firm Klarna reduced its losses by roughly 67% in the first half of 2023, as the company dramatically cut costs in a bid toward profitability. The company reported overall net operating income of 9.2 billion Swedish krona ($843.5 million), up 21% year-over-year. Failing to record a half-year profit, the firm posted a net loss of 2.1 billion Swedish krona for the period, down 67% from 6.4 billion krona between January to June 2022. Credit losses, a measure of how much the company sets aside for customer defaults, sank by 39% to 1.8 billion krona from 2.9 billion. Buy now, pay later, or BNPL, firms allow shoppers to defer payments to a later date or purchase things over installments on interest-free credit.

Persons: Klarna, Sebastian Siemiatkowski, Siemiatkowski, —, OpenAI's, David Sandstrom Organizations: CNBC, PayPal Locations: Helsinki, Finland

The January-June operating loss at the privately held (BNPL) fintech, which last made a full-year profit in 2018, was 2.01 billion crowns ($185 million) against a year-earlier loss of 6.17 billion. "We feel very confident that we'll be posting a profitable quarter very soon and then eventually also a full profitable year." Klarna Bank is a unit of Klarna Holdings, which has attracted investment from the likes of Sequoia, Permira and Silver Lake. Siemiatkowski said Klarna, whose biggest market by revenue is the U.S., now has more than 30 million users. In the second quarter, gross merchandise volume (GMV) - the value of goods purchased through Klarna - was up 14%, and revenue growth was 17%.

Persons: Sebastian Siemiatkowski, Siemiatkowski, Klarna, Supantha Mukherjee, Anna Ringstrom, Terje Solsvik, Sharon Singleton Organizations: Klarna Bank, Reuters, Klarna, Klarna Holdings, Sequoia, Thomson Locations: STOCKHOLM, Ukraine, Silver, U.S, Klarna

☆ What to know before you take advantage of your credit card’s buy now, pay later option
▼ + stars: | 2023-08-29 | by ( Lorie Konish | ) www.cnbc.com time to read: +1 min

The offer may sound tempting, given today's record-high interest rates on debt, which now average 20.5% for credit cards, according to Bankrate. Credit card buy now, pay later plans include American Express Pay It Plan It, My Chase Plan and Citi Flex Pay. While those BNPL companies are acting more like credit card issuers, the latter, in turn, have taken on features similar to BNPL, he noted. The choices come as rising interest rates have made carrying debt more expensive. The latest data shows consumers are struggling under rising balances, with total credit card debt recently topping $1 trillion for the first time.

Persons: Ted Rossman Organizations: American, Citi, Finance

☆ Borrowers with student loans average higher incomes, says Mizuho's Dan Dolev
▼ + stars: | 2023-08-15 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBorrowers with student loans average higher incomes, says Mizuho's Dan DolevDan Dolev, Mizuho senior analyst, joins 'Power Lunch' to discuss the impact of student loans on consumers and BNPL.

Persons: Dan Dolev Dan Dolev Organizations: Mizuho

☆ Apple's high-yield savings account hits over $10 bln in customer deposits
▼ + stars: | 2023-08-02 | by ( ) www.reuters.com time to read: +1 min

The Apple Inc logo is seen at the entrance to the Apple store in Brussels, Belgium November 28, 2022. REUTERS/Yves HermanAug 2 (Reuters) - Apple’s (AAPL.O) high-yield savings account offered by its partner Goldman Sachs (GS.N) has reached over $10 billion in customer deposits, the technology giant said on Wednesday. The deposit account, which was launched in April, lets Apple Card users earn an annual percentage yield of 4.15% on savings accounts. U.S. lenders have had to offer higher rates on customer deposits to prevent clients from moving their funds to other high-yield alternatives, especially after an industry crisis earlier this year shook customers' faith in the financial health of banks. In March, Apple also launched its "buy now, pay later" (BNPL) service in the United States, expanding its footprint in the financial technology space.

Persons: Yves Herman, Goldman Sachs, Manya Saini, Pooja Desai Organizations: Apple, REUTERS, Apple Card, Thomson Locations: Brussels, Belgium, United States, Bengaluru

☆ TikTok Shop strikes 'buy now, pay later' partnership in Malaysia as part of e-commerce push
▼ + stars: | 2023-07-21 | by ( Sheila Chiang | ) www.cnbc.com time to read: +1 min

TikTok struck a partnership with "buy now, pay later" service Atome to offer installment payments on its e-commerce marketplace in Malaysia, the latest in the company's e-commerce push into Southeast Asia. TikTok Shop will include Atome as a payment option, which would allow customers to spread deferred payments over three or six months. Atome is the BNPL arm of Singapore-based fintech firm Advance Intelligence Group, which is backed by major investors like SoftBank Vision Fund 2 and Warburg Pincus. The partnership is expected to "drive growth" and "enable merchants and small businesses to offer their customers a convenient and flexible payment option," Jonathan Low, e-commerce lead of strategy and special projects at TikTok Shop, said in a statement on Friday. "By integrating Atome as a payment option on TikTok Shop, we're excited to help drive ecommerce growth and support brands of all sizes," said William Yang, head of commercial at Atome.

Persons: TikTok, Atome, Warburg Pincus, Jonathan Low, William Yang Organizations: Advance Intelligence Group, SoftBank Locations: Malaysia, Southeast Asia, Singapore, Atome

☆ Australia's BNPL firm Zip to streamline cost and operations - official
▼ + stars: | 2023-07-03 | by ( ) www.reuters.com time to read: +1 min

July 3 (Reuters) - Australian buy-now-pay-later firm Zip Co (ZIP.AX) is further streamlining its operations and cost base following a recent review, a company official told Reuters on Monday. "Following a recent review, we have made decisions to further streamline our operations and cost base," Vivienne Lee, director for investor relations, said in an emailed comment. The new law would require BNPL firms to run credit checks before lending, notifying customers when credit limits increase and following dispute resolution processes. It also aims to reduce cash burn from the rest of its global operations by the end of 2023. Shares of Zip, which tanked over 88% last year, are down nearly 16% this year as of Monday's close.

Persons: Vivienne Lee, Zip, Ayushman Ojha, Nausheen Thusoo, Rashmi Aich, Dhanya Ann Thoppil Organizations: Co, Reuters, Australian Securities and Investments Commission, Thomson Locations: Australia, Central, Eastern Europe, South Africa

☆ Exclusive: Latam unicorn Merama cuts nearly 10% of staff amid 'strategy' refocus
▼ + stars: | 2023-06-29 | by ( Isabel Woodford | Thomson Reuters | Isabel Is A British-Spanish Journalist Based In Mexico City. She Joined Reuters In As Part Of The Latin America News Hub | ) www.reuters.com time to read: +1 min

The company, which has raised $345 million in funding from the likes of SoftBank Group (9984.T) and was last valued at $1.2 billion, has headquarters in Mexico and Brazil. CEO Sujay Tyle said the total number laid off was around 8-9%, with the company's headcount remaining over 400 employees. He added that those affected were concentrated in projects that were no longer a priority, with plans to refocus on brands generating over $15 million in revenue. "It was a difficult day," Tyle said of the layoffs, adding there were no plans for another series of job cuts. Tyle added that the company had a "quite healthy runway" and was now cash flow positive.

Persons: Sujay Tyle, Tyle, Isabel Woodford, Diane Craft Organizations: MEXICO CITY, Reuters, SoftBank, Thomson Locations: MEXICO, Mexico, Brazil, Brazilian, Colombian

June 20 (Reuters) - Private equity firm KKR (KKR.N) has agreed to purchase a substantial portion, or up to 40 billion euros ($43.71 billion), of payments company PayPal's (PYPL.O) buy now, pay later (BNPL) loans in Europe, the companies said on Tuesday. After the deal closes, PayPal expects to allocate roughly $1 billion to incremental share repurchases in 2023, contributing to an updated outlook of about $5 billion in total share repurchases so far this year. PayPal last year processed more than $20 billion of BNPL payment volume globally, up nearly 160% from 2021. Since launching its BNPL service in 2020, PayPal has issued more than 200 million loans to more than 30 million customers globally. The company said it will continue to remain responsible for all customer-facing activities, including underwriting and servicing associated with its European BNPL products.

Persons: BNPL, Brett Horn, Horn, Manya Saini, Hannah Lang, Arun Koyyur, Will Dunham Organizations: KKR, PayPal, Morningstar Research Services, Thomson Locations: Europe, France, Germany, Italy, Spain, United Kingdom, Bengaluru, Washington

☆ KKR to buy nearly $44 bln of PayPal's buy now, pay later loans in Europe
▼ + stars: | 2023-06-20 | by ( ) www.reuters.com time to read: +1 min

June 20 (Reuters) - Investment firm KKR (KKR.N) has agreed to purchase a substantial portion, or up to 40 billion euros ($43.71 billion), of PayPal's (PYPL.O) buy now, pay later (BNPL) loans in Europe, the payments company said on Tuesday. After the deal closes, PayPal expects to allocate roughly $1 billion to incremental share repurchases in 2023, contributing to an updated outlook of about $5 billion in total share repurchases so far this year. Last year, PayPal processed more than $20 billion of BNPL payment volume globally, up nearly 160% from 2021. Since launching its BNPL service in 2020, PayPal has issued more than 200 million loans to over 30 million customers globally. ($1 = 0.9151 euros)Reporting by Manya Saini in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

Persons: BNPL, Manya Saini, Arun Koyyur Organizations: Investment, KKR, PayPal, Thomson Locations: Europe, Bengaluru

☆ KKR takes private markets right up to the checkout
▼ + stars: | 2023-06-20 | by ( Jonathan Guilford | ) www.reuters.com time to read: +3 min

It’s a cozy arrangement for all involved, and marks another step in private lenders’ encroachment into traditional financiers’ turf. KKR will now purchase and hold up to 3 billion euros of PayPal’s BNPL loans, originated in five European countries and typically a few months in duration. KKR can pump up its returns using leverage – the deal is funded partly from loans made by its own credit funds. Follow @JMAGuilford on TwitterCONTEXT NEWSFinancial technology firm PayPal announced on June 20 that it had signed a multi-year 3 billion euro replenishing loan agreement with asset manager KKR. The deal will see KKR purchase up to 40 billion euros of PayPal’s short-term buy-now-pay-later loans now and in the future.

Persons: Joe, Banks, John Foley, Katrina Hamlin Organizations: YORK, Reuters, Joe Public, KKR, PayPal, Citi, Thomson

☆ Here are Thursday's biggest analyst calls: Nvidia, Tesla, Chipotle, Chevron, Netflix, Meta, Target and more
▼ + stars: | 2023-06-15 | by ( Michael Bloom | ) www.cnbc.com time to read: +9 min

Bernstein reiterates Target as outperform Bernstein said investors should buy the weakness in Target shares. UBS reiterates Chipotle as buy UBS said the Mexican chain is "well positioned w/ drivers to support transaction and sales growth." RBC reiterates Tesla as outperform RBC raised its price target to $305 per share from $212 and said it's bullish on Tesla's autonomy future. " TD Cowen reiterates Netflix as outperform TD Cowen raised its price target on the stock to $500 per share from $440 and says it's well-positioned. UBS reiterates Chevron as buy UBS said it sees "balance sheet strength & dividend growth" for Chevron.

Persons: Evercore, it's bullish, Emerson, Bernstein, Mizuho, Coinbase, Moody's, Guggenheim, McDonald's, Chipotle, Morgan Stanley, Goldman Sachs, Goldman, Wells, Wells Fargo, Tesla, it's, Oppenheimer, SoFi, Uber, Jefferies, TD Cowen, NFLX, Cowen, Stifel Organizations: ISI, Energy & Materials, Livent, HSBC, Emerson, " Bank of America, P, Bank of America, Citi, American Express Citi, American, Citi Credit Card, Travel & Entertainment, RBC, Nvidia, UBS, Mobile, Diageo, Spirits, Deutsche Bank, JPMorgan, Microsoft, Netflix, Corning, Chevron, Meta, DR Locations: Mexican, Allegiant, Edgewater

☆ UK fintech bank Monzo more than doubles revenue but marginally narrows losses to $143 million, results show
▼ + stars: | 2023-05-31 | by ( Callum Burroughs | ) www.businessinsider.com time to read: +2 min

London-based fintech bank Monzo more than doubled its revenue last year, results show. The company, founded in 2015, also narrowed losses marginally to £116.3 million ($143.4 million). British fintech bank Monzo more than doubled its revenue last year and marginally narrowed losses to £116.3 million ($143.4 million), according to results published on Wednesday. Monzo, famous for its bright coral pink debit cards, added another 1.6 million customers with the bank now servicing around 7.4 million users. The company's results come after fellow London-based fintech bank Starling, announced a pre-tax profit of £195 million ($241 million).

Persons: Anil, Monzo, Starling, Y Combinator, Tom Blomfield, Combinator Organizations: Catalyst, Abu Dhabi Growth Fund Locations: British, London, Abu Dhabi

☆ Interim stop order for Humm's BNPL products revoked
▼ + stars: | 2023-05-28 | by ( ) www.reuters.com time to read: +1 min

May 29 (Reuters) - Australian fintech company Humm Group (HUM.AX) said on Monday an interim stop order issued by the country's corporate regulator restricting it from issuing buy-now-pay-later (BNPL) products to new customers had been revoked. The interim stop order issued last week against Humm's unit was related to the Australian Securities and Investments Commission's (ASIC) concerns regarding the target market determination for its BNPL products. Target market determination rules require issuers of BNPL products to consider whether a product aligns with the financial objectives, circumstances and needs of consumers. "Hummgroup has addressed ASIC's concerns regarding the target market determination for the humm Buy Now Pay Later product," the company said in statement. The company's BNPL product is again available to new customers following the revocation, it added.

☆ A pizza company is letting customers buy now and pay when they're dead
▼ + stars: | 2023-05-27 | by ( Chris Panella | ) www.businessinsider.com time to read: +2 min

A pizza company is letting customers buy now and pay after they're dead. Hell Pizza says the AfterLife Pay system will initially run as a trial for 666 people. A New Zealand pizza company has unveiled a new "buy now, pay later" system that lets customers wait to pay for their order until after they're dead. The "AfterLife Pay" system requires customers to sign a real amendment to their wills, allowing their pizza debts to be collected after they've died. Hell Pizza CEO Benn Cumming told Newshub the "light-hearted" marketing stunt was inspired by current buy now, pay later programs affecting Kiwis.

☆ Australia to regulate buy-now-pay-later sector
▼ + stars: | 2023-05-21 | by ( ) www.reuters.com time to read: +2 min

SYDNEY, May 22 (Reuters) - The Australian government said on Monday it would introduce laws that will consider buy-now-pay-later (BNPL) services as a credit product in a bid to protect consumers in a largely unregulated industry. "Best way to do that is to legislate, to regulate as a credit product, so that we can manage some of the risks." But concerns about repayment have been rising as Australia battles high inflation, which now sits at near 30-year highs. Australia, home to about a dozen listed BNPL providers, has about 7 million active accounts that resulted in A$16 billion ($10.9 billion) of transactions in 2021-22, up 37%, data showed. ($1 = 1.4743 Australian dollars)Reporting by Renju Jose in Sydney; Editing by Lincoln FeastOur Standards: The Thomson Reuters Trust Principles.

☆ Morgan Stanley's wealth business just keeps on winning
▼ + stars: | 2023-04-28 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +6 min

It's good to be Morgan Stanley these days. Amid a difficult market for Wall Street banks — thanks in large part to non-existent deal flow — Morgan Stanley's massive wealth business has been paying off big time. But Morgan Stanley's success isn't coming in a vacuum. -Meanwhile, UBS, arguably Morgan Stanley's biggest competitor in the space, was begrudgingly saddled with Credit Suisse's carcass. With wealth advisors, a key part of hiring includes offering "bonuses" that are actually loans.

☆ Fintech giants Klarna and Block slam 'outdated' UK buy now, pay later regulation proposals
▼ + stars: | 2023-04-27 | by ( Ryan Browne | ) www.cnbc.com time to read: +2 min

Alex Marsh, Klarna's head of U.K., said the proposals would lead to lengthened application times and result in "disproportionate friction" for consumers. In a consultation paper published in February, the U.K. government suggested applying parts of existing regulation – namely, the Consumer Credit Act – to buy now, pay later plans. The currently unregulated buy now, pay later model would be supervised by the Financial Conduct Authority. Buy now, pay later loans allow shoppers to defer payment by a month or to split the cost of their purchases over a period of equal monthly instalments. Based on Klarna modelling, that could increase to five minutes under the new U.K. rules, Marsh said.

☆ Apple Pay Later is more about making Apple Pay more convenient than trying to dominate the 'buy now, pay later' arena, analysts say
▼ + stars: | 2023-04-09 | by ( Sam Tabahriti | ) www.businessinsider.com time to read: +4 min

Apple Pay Later could help increase demand for iPhones, one analyst said. Jennifer Bailey, Apple's vice-president of Apple Pay and Apple Wallet, said the move was a response to consumer demand for flexible payment options. Enhancing the Apple ecosystemSelect users are being invited to use a prerelease version of Apple Pay Later, with plans to widen access later this year. Analysts say Apple Pay Later is more about increasing the convenience of Apple Pay and enhancing its ecosystem than an attempt to dominate the BNPL arena. Holubowskyj believes Apple has an opportunity to benefit from Apple Pay Later by increasing uptake of Apple Pay down the line as it expands into other markets.

☆ Apple just launched its own buy now, pay later service—here’s how it compares with Affirm, Afterpay, Klarna and PayPal
▼ + stars: | 2023-03-30 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +1 min

Apple is shaking up the buy now, pay later industry. On Tuesday, the tech giant launched Apple Pay Later, which allows Apple Pay users to split purchases into four interest-free payments paid over six weeks without an additional fee. Prior to making a purchase, Apple Pay Later users can apply for a loan between $50 and $1,000 and use it for in-app purchases or to buy products online through retailers that accept Apple Pay. After Apple Pay Later is initially set up, you'll also be able to apply for a loan right at checkout. Here's how Apple Pay Later compares.

☆ Apple launches buy now, pay later service in U.S.
▼ + stars: | 2023-03-28 | by ( ) www.reuters.com time to read: +2 min

The service, Apple Pay Later, will allow users to split purchases into four payments spread over six weeks with no interest or fees, the company said. "Apple Pay Later will absolutely wallop some of the other players. Hewson added that Apple Pay Later will be a disruptor as consumers are looking for the easiest way to get what they want, as their wallets have been stretched by inflation. BNPL firm Affirm Holdings Inc's (AFRM.O) shares fell more than 7%, while PayPal was down about 1.5% in midday trading. Apple Pay Later is enabled through the Mastercard Installments program, the company said, adding that Goldman Sachs (GS.N) was the issuer of the Mastercard payment credential.

☆ Forget luxury goods, US shoppers are now using buy-now-pay-later services to pay for groceries
▼ + stars: | 2023-03-23 | by ( Mary Hanbury | ) www.businessinsider.com time to read: +3 min

New data shows that US shoppers are increasingly using buy-now-pay-later services to buy groceries. Historically, these services have been used as a way to cover the cost of non-essential or pricier items – like luxury goods, for example. While the number of online purchases made using BNPL services grew in the last two months, revenue fell by 19% year-over-year — indicating that customers are using these services for cheaper items. A spokesperson for Klarna did not comment on whether it has seen an uptick in its users using BNPL for grocery shopping when contacted by Insider. This includes cutting back on non-essential items, trading down from pricier products to store own brands, shopping at cheaper chains, and now, using BNPL services in different ways.

☆ The State of Payment Methods: More Choice and Economic Changes Are Affecting Consumers Spend
▼ + stars: | 2023-03-21 | by ( Insider Intelligence | ) www.businessinsider.com time to read: +3 min

Although debit still reigns supreme, with consumer preferences moving toward digital, cash and checks will continue to be displaced in the US. But even though cash usage is dwindling, the Federal Reserve reports that 79% of US adults still hold cash daily. Cash and check usage may be dwindling, but debit and credit cards are seeing upticks among economic uncertainty. As consumers become more concerned about the economy and job security while also steadily adopting new digital solutions, we are seeing shifts away from traditional payment methods. Curious to learn more about the state of payment methods?

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