So what’s in store for credit cards and other forms of payment post-pandemic? Business Insider takes a look at the numbers for 2020 and predicts what will happen in 2021 with credit cards, consumer debt and payments.
From the article:
Buy now, pay later (BNPL) usage grew 37.7% since last summer, reaching 55.8% of US consumers by March 2021, according to The Motley Fool. Fintech companies like Affirm, Afterpay, and Klarna offer this technology to appeal to customers seeking out lower-risk ways to take on debt as they recover from the pandemic.
While many issuers currently offer some kind of payment flexibility, they will have to employ new strategies to contend with BNPL offerings. Some providers are allowing eligible customers to pay for select purchases over time, or are offering a different interest rate than their typical APR. Some examples include American Express’ Plan It, Chase’s My Chase Plan, and Citi’s Flex Plan.
Issuers are also leveraging partnerships with retailers to better compete with BNPL providers’ buy buttons prominently displayed on ecommerce sites. Goldman’s Apple Card allows customers to finance Apple purchases, and Citi offers flexibility on Amazon purchases over $100. We may also see partnerships with third-party companies, including Jifiti, which would bring BNPL offerings to merchant partners, and ultimately create a competing digital network.
Read full article here: https://www.businessinsider.com/credit-card-issuers-covid19