Revolut latest FinTech to join BNPL market

Revolut has revealed plans to offer Buy Now, Pay Later (BNPL) services to its 16 million customers.

The financial technology business, which is currently worth $33 billion, is the latest in a long list of companies joining the fast-growing market.

Today, payments giant PayPal announced its plans to acquire BNPL venture Paidy in a $2.7 billion deal.

Laybuy, the New Zealand company with a growing UK presence, launched its flexible payments app last week.

The company is developing a checkout feature and the ability to enable customers to split the cost of any purchases using its cards, according to a report by the Evening Standard.

“Simply a button which you switch on and then your card becomes a buy now pay later product,” Nikolay Storonsky, Revolut chief executive, told the paper. “Instead of paying upfront everything, you pay a third and then in two weeks time we charge you a third and then another third.”

The report said that the BNPL products are in the early stages of development and are expected to be tested in some European markets in 2022.

Last year saw the UK’s BNPL market almost quadruple, driving its value up to £2.7 billion.

The growth of the market has proven controversial, with recent research from Citizens Advice revealing that one in eight – or 12 per cent – of consumers between 18 and 34 have been chased by debt collectors after using BNPL services.

BNPL firms Klarna, Clearpay, Laybuy, and Openpay told Citizens Advice they only refer customers to debt collectors as a last resort.

Earlier this year, following the publication of the UK financial watchdog’s Woolard Review, the government decided that it would take action to regulate BNPL providers.

It was revealed that the Financial Conduct Authority would work with the Treasury on amendments to existing legislation and to develop a “proportionate regulatory framework.”

Revolut said that the service would launch in EEA markets where the company has a bank licence before the UK.

    Share Story:

Recent Stories


The Future of Intelligent Finance
FStech Group Editor Mark Evans sits down with Jason Cao, President of Global Financial Services Business Unit, Enterprise BG at Huawei ahead of its Intelligent Finance Summit which was held on 3rd and 4th of June in Shanghai. This Q&A delves into key trends in digital transformation of the financial services industry as well as a look at how data, robotic infrastructure, intelligent storage and innovative technologies are shaping the future for FSIs.

The Rise of Instant Payments
Instant payments are creating new business opportunities for banks by providing more touchpoints than ever. With these evolutions underway, Featurespace brought leading industry experts together to discuss how they are protecting customers from fraudsters in real time, utilizing innovative and disruptive solutions to reduce fraud. Click here to find out more.

Offloading Cyber Risk in the Cloud
As cyber attacks and data breaches are in the news on an increasingly regular basis - with regulatory penalties and customer trust on the line for financial services firms - it has never been more crucial to be compliant in the cloud.

This video, with Akamai’s EMEA director of security technology and strategy Richard Meeus, will help explain what your company can be doing to make sure it’s not embroiled in the next big fine or front-page scandal.