Service providers are using their existing relationships with small businesses to move into financial services, taking on financial institutions by offering solutions like lending and bank accounts that are powered by partnerships, digital banking developments, and even in-house banks.

Buy now, pay later solutions are quickly gaining adoption as consumers look for new financing options and merchants aim to drive sales. But the industry is still unsettled as a number of firms are battling to lead the space, while card networks and issuers are looking to get involved too.