PYMNTS-MonitorEdge-May-2024

Today in the Connected Economy: BNPL Remains Attractive Amid Inflation

BNPL

Today in the connected economy, earnings results from buy now, pay later (BNPL) companies show the payment method remains attractive to consumers. Plus, Ulta Beauty reports that digital shopping remains popular even as people return to stores, and information management company Open Text buys software firm Micro Focus for $6 billion.

Klarna, Block, Sezzle Results: Merchants, Consumers Flocking to Short-Term Financing

U.S. Federal Reserve Chair Jerome Powell has warned that interest rates will continue to rise to battle inflation. How that affects consumer spending is still unclear, but it might be the reason that BNPL remains a crucial lure for individuals and families to purchase what they need, with little to no fees that are typically found with more traditional credit products.

Ulta Beauty Answers Consumer Call for Omnichannel Options

While consumers have started going back to brick-and-mortar stores, they haven’t given up on online shopping, Ulta Beauty reported on its latest quarterly earnings call. What’s more, the number of consumers that use both physical and digital channels is still rising, with buy online, pick up in-store (BOPIS) now making up 25% of its eCommerce sales, compared to 20% last year. More than a third of the company’s digital orders this quarter were fulfilled by stores via BOPIS, same-day delivery or ship from store.

Open Text Strikes $6B Acquisition Deal for Micro Focus

Information management company Open Text is purchasing software firm Micro Focus International in a $6 billion all-cash deal. CEO and Chief Technology Officer Mark J. Barrenechea said clients of both companies will enjoy the benefits of being able to speed up their digital transformations by “unlocking the full value of their information assets and core systems.” Open Text’s integrated information management platform helps clients organize, integrate and protect incoming and outgoing data and content flows.

Zuora to Acquire Zephr for $44M to Expand Subscription Solutions

Subscription management platform provider Zuora plans to acquire subscription experience platform Zephr in a deal worth $44 million. Digital publishing and media companies use Zephr, which means the deal will boost Zuora’s standing in that industry, expand opportunities in other sectors, and speed platform innovation.

PYMNTS-MonitorEdge-May-2024