Newsletter 13/23

• Apple has finally launched its Buy Now, Pay Later service in the US. The new feature, called Apple Pay Later, lets customers split payments for purchases into four installments over six weeks, with the first installment due at the time of purchase. Apple users can also apply for a loan within the Wallet app, ranging from $50 to $1000, with no interest or fees, to make online or in-app purchases. The payment option is rolling out to select users in the United States now, with plans to offer it to all eligible customers over the next several months. While Apple is working with Goldman Sachs and Mastercard on the service, it has set up a wholly-owned subsidiary, Apple Financing, to offer loans directly. http://bit.ly/3nCDB02

• du-it , a Malaysia-based Islamic fintech company, has recently launched a crowdfunding campaign in collaboration with Ethis Malaysia, a leading global Islamic crowdfunding platform. The campaign aims to support the development of its innovative B2B Buy Now, Pay Later platform, which is set to become the first B2B BNPL platform in Malaysia and the first in the world operating in a Shariah-Compliant setting. du-it is dedicated to providing interest-free instalment solutions to businesses, particularly small and micro-sized enterprises. The platform offers a credit limit of up to RM50,000, based on the client's risk profiling, and allows businesses to obtain approval within minutes. http://bit.ly/3KkxLJI

• Seattle Bank moves into Buy Now, Pay Later with LoanStar Technologies . Seattle Bank, a digitally-driven local bank, has announced a new embedded banking partnership with LoanStar Technologies (LoanStar), a fintech company that enables merchants and service providers to offer point-of-sale consumer loans. Consumers will now be able to quickly and easily access loans from Seattle Bank for high-value transactions, directly through the merchant. This partnership is allowing Seattle Bank to expand its reach to customers nationally. https://bit.ly/3ZLbmtP

• ASX-listed Buy Now, Pay Later fintech Zip Co has struck deals to offload Twisto, A Param Company , the European BNPL it acquired two years ago, as well as its South African business, Payflex . The business is also winding down its Middle Eastern operations, as previously flagged, as it looks to stem losses and quarterise its cash burn. Zip told the market on Thursday it has signed agreements to divest Twisto and Payflex and expects aggregate net cash inflows of approximately $20 million to be received during H2 FY23 as a result. The deals are subject to regulatory approval. The BNPL first bought into Twisto in 2020, then acquired the rest of the business in late 2021, for around $140 million. It also spent $21 million to acquire Spotti, in the Middle East. Zip walks away with $20 million in its pocket. https://bit.ly/3K3sLrA

• ZestMoney faces funding crunch as PhonePe cancels acquisition deal due to due diligence concerns, which is a major setback for the Buy Now, Pay Later platform. Reportedly, Walmart-backed digital payment platform PhonePe has cancelled its acquisition deal of BNPL provider ZestMoney due to due diligence concerns. The estimated value of the acquisition was between $200 million to $300 million. This development is seen as a significant setback for ZestMoney, which has the backing of major investors such as Goldman Sachs, PayU, and Xiaomi. https://bit.ly/42Tj5IU

• Berlin-based B2B Buy Now, Pay Later fintech Billie presented new company figures for the fiscal year 2021. In the reporting period, the company managed receivables of €463 million - up from €292 million and €253 million in the previous years. Interest income from lending and money market transactions was €8.7 million in 2021 - up from €5.5 million and €4.7 million, respectively. "Following the conclusion of fiscal 2020, which was significantly impacted by the Corona pandemic, the company has returned to its old growth path," the financial statements state. However, the net loss for 2021 was €10.1 million - after €8.7 million and €4.8 million in the previous two years. Regarding the year 2022, which has meanwhile passed, the annual financial statements state: "Against this economically stable backdrop, we are again assuming moderately increasing purchase volumes and income from the factoring business in 2022 with growth rates that will be in the mid double-digit percentage range. A significant growth driver will be the planned expansion into new European markets." http://bit.ly/3G5Q3fb

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This is a wrap of global news coverage on the BNPL industry and does not necessary represent my view. This newsletter is in no shape or form related to my employer. Views expressed are my own.