Block Inc.’s (SQ) shares are trading higher on Thursday, fueled by the positive performance of peer Buy Now, Pay Later (BNPL) company Affirm Holdings, Inc. (AFRM). Affirm’s strong quarterly results, including revenue growth of nearly 50% year-over-year and upbeat guidance, have boosted sentiment in the BNPL sector.
At the Kazakhstan International Tourism and Travel Exhibition (KITF), banking delegates met to discuss the latest trends in the sector. Sergey Ulyanich from Home Credit Bank indicated that tourism is not the most lucrative area for their bank, with loans mostly going towards smartphones and furniture. He revealed that the average tourism loan from Home Credit Bank is around $1686, used to enhance experiences or upgrade destinations. Kaspi Bank’s introduction of interest-free installment payments and a user-friendly mobile app have made it the most popular bank in Kazakhstan. The bank’s Kaspi Travel platform, launched in collaboration with tour operators, has posed a challenge to traditional tour agencies. Despite partnering with Kaspi Travel, Selfie Travel reported only a modest increase in sales, highlighting the impact of the platform.
Grocery giant Walmart has launched a second Buy Now, Pay Later (BNPL) program in partnership with tech firm One. This new payment option will be available at over 4,600 Walmart locations nationwide for eligible purchases between $100 and $3,000. Like other BNPL programs, One allows customers to take home items by paying only a minimum balance or percentage of the overall purchase amount. However, experts caution that these programs can carry significant financial risks for shoppers. The APR for One’s BNPL feature ranges from 9.99% to 35.99%, and missed payments can lead to debt collection and other penalties.
Swedish financial technology company Klarna has announced a global partnership with Uber to power payments for the ride-hailing giant’s Uber and Uber Eats apps. The partnership will see Klarna added as a payment option in the U.S., Germany, and Sweden, along with Klarna’s “Pay Now” option, which lets customers pay off an order instantly in one click, in the Uber and Uber Eats apps. Klarna will also offer an additional payment option for Uber users in Sweden and Germany which allows users to bundle purchases into a single, interest-free payment that gets taken out of their monthly salary. The deal marks one of the most significant merchant wins for Klarna of late, and comes as the European fintech giant is rumored to be gearing up for a blockbuster initial public offering that could value the firm at north of $20 billion.
