Meanwhile, embedded finance in Southeast Asia (SEA) has been driven largely by ride-hailing platforms such as Singapore-based Grab—which has rolled out a buy now, pay later(BNPL) solution, micro-investing, and consumer loans to date—and ecommerce companies like India’s Udaan.
This will improve the customer experience for existing financial products and could lead to more ubiquitous use of payment plans or automated micropayments. Similarly, the proliferation of IoT devices and connected machines will also lead to M2M communications and payments.
Chase’s entry could give it an early mover advantage—and might signal issuers’ plans to compete with fintechs like Deserve and buy now, pay later(BNPL) products to grab users who might take up nontraditional alternatives.
Expanding Shop Pay could also make Shopify a more formidable buy now, pay later(BNPL) player by making its solution more widely accepted. The ecommerce platform provider and Affirm recently made Shop Pay Installments available to eligible US Shopify merchants, and it could someday bring the BNPL solution to all merchants that use Shop Pay.