Codebase Technologies has launched a buy-now-pay-later (BNPL) solution to help banks tackle the threat of rising BNPL brands.
Codebase Technologies’ new BNPL component allows for banks, fintechs, lenders, retailers, and anyone in between to create and launch their own branded BNPL offering.
Omar Mansur, Global Enterprise Lead at Codebase Technologies, added, “We’ve seen a gap in the BNPL market for some time, especially when it comes to banks and lenders. The BNPL space has been growing and changing quickly, and large institutions haven’t historically been the quickest to adapt to new trends.”
As people continue to deal with the adverse effects of the Covid-19 pandemic on jobs and the economy, BNPL has emerged as a payment method of choice for millennials and Gen Z’s looking to adapt their spending habits to their new lifestyles. According to a study by Ascent, the most common reason to use buy now, pay later services is to make purchases that don’t fit in one’s budget – 45 percent of respondents have used it for this reason. Furthermore, 36 percent of buy now, pay later customers use BNPL once a month or more. Global adoption of BNPL is estimated to continue growing as 30.09 percent of global customers reported that they are very unlikely to use BNPL in the next six months.
Until now, companies looking to implement BNPL into their customer offering faced two choices: build it from scratch or partner with an existing BNPL brand.
Raheel Iqbal, Managing Partner at Codebase Technologies, stated, “BNPL is an exciting space, and we’ve had multiple discussions in the past few months with financial institutions who have outlined the challenges they’re facing in adapting to this new trend. BNPL providers are popping up worldwide and attracting huge numbers of customers, and banks especially are feeling the pressure.”
