Traditional Banks Seize BNPL Market as JPMorgan Logs $10.8 Billion in Payment-Plan Volume
Updated
Updated · evotek.vn · Jul 11
Traditional Banks Seize BNPL Market as JPMorgan Logs $10.8 Billion in Payment-Plan Volume
3 articles · Updated · evotek.vn · Jul 11
Summary
JPMorgan Chase said 6 million customers have used its credit and debit installment plans, generating $10.8 billion as banks gain ground in buy now, pay later.
36% of more than 2,000 surveyed consumers recently used card-linked installment plans, versus 12% for standalone fintech apps, reflecting demand for bank trust, rewards and card protections.
About half of major credit card issuers now offer integrated installment plans, and Bank of America recently launched Custom Plan to let cardholders split qualifying purchases into monthly payments.
Fintechs still lead overall BNPL transaction volume but are adapting: Affirm is partnering with banks through Affirm Edge and seeking a Nevada industrial bank charter, while Klarna has filed in Utah.
60% of consumers said they would trust AI to choose the best payment plan, rising to 80% of Gen Z and 78% of Millennials as installment options multiply.
Will AI make BNPL a path to financial inclusion or simply a more efficient engine for consumer debt?
As late payments surge, is the Buy Now, Pay Later boom creating a new consumer debt crisis?
With banks now leading the market, can fintechs survive by powering the very rivals that are displacing them?
Traditional Banks Seize the $1 Trillion BNPL Opportunity: Market Dynamics, Regulation, and AI Innovation
Overview
The Buy Now, Pay Later (BNPL) market is rapidly evolving as traditional banks move in to capture market share. This shift is driven by slowing BNPL growth, changing consumer preferences, and increased competition among major retailers and payment providers. As the environment becomes more dynamic, established financial institutions are integrating BNPL solutions to retain customers. Merchant decisions, such as Walmart switching from Affirm to Klarna, and the integration of BNPL by major wallet providers, are reshaping availability at checkout. These changes highlight how banks are adapting to new trends and intensifying competition in the BNPL space.