Codebase Technologies is rolling out a new buy now, pay later (BNPL) solution to help banks and other businesses modernize and add those types of payment structures, according to a report Monday (April 4) by ITP.net.
“We’ve seen a gap in the BNPL market for some time, especially when it comes to banks and lenders,” said Omar Mansur, global enterprise lead at Codebase Technologies. “The BNPL space has been growing and changing quickly, and large institutions haven’t historically been the quickest to adapt to new trends.”
The new tech will reportedly 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 noted that as companies have historically had to build a BNPL offering from scratch or partner with an existing BNPL firm to offer it, this new solution offers businesses a streamlined way to add these services.
“BNPL is an exciting space, and we’ve had multiple discussions in the past few months with financial institutions who have outlined the challenges they’re facing in adapting to this new trend,” said Raheel Iqbal, managing partner at Codebase Technologies. “BNPL providers are popping up worldwide and attracting huge numbers of customers, and banks especially are feeling the pressure.”
BNPL has become very popular in the last few years, particularly with the pandemic and the havoc it wrought on the economy in various ways. The report also noted that installment payments can also help younger generations adapt to new spending styles.
According to a study 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 used it for that, while 36% said they used BNPL at least once a month.
PYMNTS wrote that customers might not always consider BNPL if they’re making payments where a store card is available.
See also: Making Sense of the BNPL / Store Card Divide
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