British fintech Revolut enters the crowded BNPL market

Revolut has announced that it is entering the buy-in-pay, later pay (BNPL) space and the later implementation of the so-called “responsible” pay product.

British fintech will allow customers to spread the cost of purchases up to € 499 over three installments, with a refund of 1.65% per purchase in the first two.

The roll-out will first take place in Ireland from this week. The company will look to offer the service in additional markets later this year.

Merchants will not have to register to be eligible for the service and customers who use it to purchase their products will not be charged.

This is a different model from the likes of rival firms BNPL Afterpay and Zilch, which offer interest – free refunds and charge merchants instead.

BNPL products have recently been the subject of increased scrutiny due to fears that customers would incur additional debt, which is of particular concern in light of the current cost of living crisis.

UK bank Barclays recently published a report outlining the risks to customers using BNPL services. The report was later criticism at the largest supplier of BNPL products in the UK, Stockholm-headquartered in Klarna.

The BNPL industry is currently largely unregulated. However, that will change as the government prepares to enforce its new regulatory requirements recommended this week.

The Revolut BNPL service will be prepackaged with certain protection features that are likely to be a necessity for the rest of the industry.

These include checks to ensure customers can pay for the payments before purchasing. Revolut’s later pay system uniquely assigns customers a “custom” credit limit before any purchase can be made, with a maximum limit of € 499.

“Pay Later is an exciting and fast-growing area for personal finance and consumer spending, and we are excited to add Revolut ‘Pay Later’ to our financial superscript,” said Joe Heneghan, CEO of Revolut Europe.

“Revolut Pay Later later gives our customers control and flexibility over their personal finances, in a responsible way, by enabling them to spread the cost of purchases over three installments.”

British fintech Revolut enters the crowded BNPL market

Source link British fintech Revolut enters the crowded BNPL market

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