Data released by S&P Global Market Intelligence’s 451 Research in March suggests that merchants favour bank-branded buy-now-pay-later (BNPL) services over those offered by fintechs, while a study published by Juniper Research the following month referred to banks gaining traction as disruption from non-fintech players attracts new users.
This is happening as a growing number of fintechs fall by the wayside. Last month, Laybuy entered receivership, while a similar fate befell BizPay last November, just weeks before ZestMoney shut down.
“In markets where BNPL is less widely used, or where customers have a more conservative attitude towards consumer debt – particularly in southern Europe – banks are in a strong position to leverage consumer trust,” says 451 Research analyst Sophia Furber.
However, trust is only one part of the recipe for customer retention.
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