And in December, it opened an inquiry into major buy now, pay later firms to determine the financial risks and benefits these offerings provide. Related content: Check out the “Credit Cards in the ‘Next Normal’” report to learn about the strategies credit card companies are adopting to boost growth.

The installment lending solution helps Amazon boost ecommerce sales and break further into India’s payment space—and it may also help the etailer capitalize on the global buy now, pay later market.

More of these tie-ups will spring up to allow issuers to better compete with BNPL providers’ buy buttons given their prominent placement on ecommerce sites. This may also trigger a wave of tie-ups with third-party players like Jifiti, which helps banks bring BNPL offerings to their merchant partners, and could ultimately enable issuers to create a network that counters digital BNPL upstarts’.

And it strengthens Klarna’s defense against banks, many of which recently entered the BNPL fray and have threatened to scoop up market share from incumbent BNPL players. The app also puts Klarna on more level ground with PayPal, which expanded its reach in the BNPL space and introduced its own super app.

The increasing popularity and availability of digital wallets and digital buy now, pay later (BNPL) options are moving the needle as well. Three years ago, ecommerce accounted for only 3.5% of retail sales in Southeast Asia. This year, the figure will be 8.2%, and by 2025 the number should reach nearly 10%.

Splitit partnered with UAE-based BNPL provider tabby, and Singapore-based fintech Fave launched its BNPL service in Singapore and Malaysia as global appetite for installment lending services increases.

Our prediction for 2021: Last year, we predicted PayPal would ramp up its acquisition spree by making a number of multibillion-dollar purchases in key categories like cryptocurrencies; buy now, pay later (BNPL); online checkout; and in-store payments. Were we right?

Paytm expanded its BNPL solution with Postpaid Mini and PhonePe launched a digital payment solution for cash on delivery orders—helping expand the country’s digital payment solutions.

Payments and lending features are popping up in retail brands’ shopping flows: Consumers are increasingly familiar with buy now, pay later (BNPL) products, which are both an incidental part of the customer experience and a meaningful step in a transaction. Providers entering new markets reach more verticals, such as fashion, cosmetics, and footwear, and in turn more customer segments.

Co-brand cards duel for spend with general-purpose cards, private-label cards, digital wallets, and buy now, pay later (BNPL) products. However, what looks like competition to a payment provider can actually be part of a retailer’s strategy to push shoppers to the payment product most likely to get them to complete their transaction.

One way to help manage finances, particularly for big-ticket items, is to use a buy now, pay later (BNPL) service. However, according to February 2021 data from YouGov, it’s the “big middle” group of income earners who have shown the most interest in such services.