BNPL players turn up the heat: Affirm and Klarna compete for banks, growth, and market leadership - Tearsheet

The buy now, pay later (BNPL) sector has entered a new phase, with providers like Affirm and Klarna pursuing partnerships with major banks. This indicates a shift in how financial institutions view BNPL, moving from skepticism to actively integrating it into their offerings due to rising consumer adoption. Affirm's partnership with J.P. Morgan Payments exemplifies the maturation of BNPL, enabling seamless short-term financing options for consumers. Similarly, J.P. Morgan and Klarna's collaboration demonstrates the evolving landscape of installment payment options for business customers.

"For years, traditional banks dismissed BNPL as an unsustainable lending model, prone to high default rates and regulatory scrutiny. That stance is shifting."

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