Codebase Technologies is rolling out a new buy now, pay later (BNPL) solution to help banks and other businesses modernize and add these types of payment structures, according to a report published Monday (April 4) by ITP.net.
“We’ve seen a gap in the BNPL market for some time, particularly when it comes to banks and lenders,” said Omar Mansur, global head of business at Codebase Technologies. “The BNPL space has grown and changed rapidly, and large institutions have not always been the fastest to adapt to new trends.”
The new technology would allow banks, FinTechs, lenders, retailers and others to create their own branded BNPL offering, allowing individuals to pay for various items in installments.
The report notes that since businesses have always had to create a BNPL offering from scratch or partner with an existing BNPL business to offer it, this new solution provides businesses with a streamlined way to add these services.
“BNPL is an exciting space, and we have had multiple discussions over the past few months with financial institutions who have described the challenges they are facing in adapting to this new trend,” said Raheel Iqbal, Managing Partner at Codebase Technologies. “BPL’s suppliers are popping up all over the world and attracting large numbers of customers, and banks in particular are feeling the pressure.”
The BNPL has become very popular in recent years, especially with the pandemic and the havoc it has wreaked on the economy in various ways. The report also notes that installment payments can also help younger generations adapt to new spending styles.
According to research by Ascent cited in the report, one of the most common reasons consumers use BNPL is to help pay for things that are too expensive for them at the time. Forty-five percent of survey respondents said they use it for this, while 36% said they use BNPL at least once a month.
PYMNTS wrote that customers might not always consider BNPL if they make payments when a store card is available.
See also: Making sense of the BNPL / Store Card divide