APEXX Global, a Buy Now, Pay Later (BNPL) provider, announced in the beginning of January 2022 that it is launching in the United States amid its international expansion.
"Payment service providers (PSP) are struggling with the speed of change and offering their customers the solutions they want in the markets they serve – especially among those in the BNPL industry," Rodney Bain, APEXX Global co-founder and chief strategy officer, said in a statement. "At APEXX Global, we’re confident in our ability to aid the US’s fragmented and rapidly-growing demand for cutting-edge payments solutions through our single-stop platform of leading payments providers."
The company's expansion comes as BNPL continues to grow in popularity in the U.S. and across the world. If you are looking for alternative payment forms, consider taking out a personal loan to pay down high-interest debt. Visit Credible to find your personalized rate without affecting your credit score.
BNPL transactions on the rise
BNPL transactions could reach $680 billion in volume by 2025, according to a report by Insider Intelligence. That would signify a compound annual growth rate of 13.23% per year from the $285 billion the industry saw in 2018.
The increase in BNPL options stems from the rise in online shopping. While other methods of payment can be conducted either online or in-store, BNPL companies are used just for online transactions. Those firms change no interest and space out the purchase amount into short-term payments.
As more consumers shop online, BNPL is becoming more readily available for use. In fact, e-commerce sales in the U.S. rose by 13.2% in the third quarter of 2021 to $205 billion, according to the U.S. Department of Commerce.
"The global B2C e-commerce market is set to reach $6.54 trillion by 2023, and online shopping one of the most popular online activities in the nation, but poor checkout experiences means e-commerce businesses risk losing billions in potential revenue at the point of sale due to outdated and cumbersome legacy systems and processes," Bain said.
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Regulators growing cautious of BNPL
In the U.S., regulators are becoming more cautious of BNPL products. In December, the Consumer Financial Protection Bureau (CFPB) sent out orders to BNPL providers to collect information on the risks, and said it's concerned about growing debt, the product’s regulation and data harvesting. There are also growing concerns about users’ understanding of the consequences if they don’t make payments on time.
"Buy now, pay later is the new version of the old layaway plan, but with modern, faster twists where the consumer gets the product immediately but gets the debt immediately too," CFPB Director Rohit Chopra said at the time. "We have ordered Affirm, Afterpay, Klarna, PayPal, and Zip to submit information so that we can report to the public about industry practices and risks."
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