A look at Buy Now, Pay Later (BNPL), the rise of Pay by Bank, and a busy month of events for Team Acquired.com
How Open Banking is transforming payments in the UK ??
According to recent research by Open Banking Limited (OBL), Open Banking adoption in the UK has now reached over 10 million users, with the potential to grow to the key milestone of 20 million users in the future. As this technology gains traction, Pay by Bank is emerging as a compelling alternative for businesses looking to reduce their payment processing fees and provide a seamless customer experience.
The financial benefits of Pay by Bank extend far beyond just cost savings. One of its most compelling features is the ability to provide instant settlements. This can be appealing for many businesses, particularly in high-end retail where the timely resolution of refunds and exchanges is critical to maintaining customer satisfaction.
The rise of Open Banking is not without its challenges though. Pricing and consistency in the market have been identified as areas that require attention, with the need for a more standardised framework to ensure transparency and fairness for the entire payments ecosystem. Additionally, addressing concerns around chargeback protection and fraud will be crucial for building consumer trust and driving widespread adoption.
?? To learn more about Pay by Bank and how Acquired.com could benefit your business, read the full article on our website.
The Evolving World of Buy Now, Pay Later (BNPL) ??
Buy Now, Pay Later services have experienced exponential growth, with the global BNPL market expected to reach a staggering $3.2 trillion by 2030. In the UK alone, the number of BNPL users has surged, with over 8 million consumers now utilising these interest-free credit options.
However, the rapid growth of BNPL has not been without its challenges. Early on, there were concerns about the potential for irresponsible lending and the impact on consumer financial well-being. One of the main innovations that has emerged in response to these challenges is the integration of open banking data into BNPL underwriting processes.
By leveraging open banking data, BNPL providers can make more informed and accurate credit decisions, reducing the risk of default and ensuring that consumers are only offered credit they can comfortably afford to repay.
Another significant development is the ability for BNPL users to build their credit scores through responsible usage of these services. In the past, BNPL transactions were not reported to credit reference agencies, meaning consumers could not benefit from the positive impact of their repayment history. However, this is now changing, with some BNPL providers actively reporting their customers’ payment data to credit bureaus.
As the BNPL market continues to grow and mature, the integration of open banking data will likely become even more integral to the industry’s success. By leveraging this powerful tool, BNPL providers can enhance their underwriting capabilities, expand access to credit, and empower consumers to build their financial resilience.
?? Head to the Acquired.com website to read more about Buy Now, Pay Later and Open Banking.
A month of events! ??
After a well-deserved wind-down for the Summer months, the Acquired.com team were out in full force at events across the UK this month.
The team were excited to be back at the annual UKCCC conference and awards, hosted by the Credit Services Association , where we were showing off our new merch, connecting with the industry, and hearing from our network about the latest advancements in collections.
This month some of the team also attended the eCommerce Expo and Technology for Marketing events in London.
Keep an eye out for the Acquired.com team at upcoming events!
??? We're excited to be sponsoring and exhibiting at this year's Consumer Credit Trade Association Annual Conference
??? The Acquired.com team will also be catching up with our network at the Open Banking Expo in a few weeks.
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