Shopify with over 500,000 active stores announces major product launches and updates at virtual event Reunite, including Shop Pay Installments, Shopify’s new “Buy Now, Pay Later” option, will let merchants offer more payment choice and flexibility at checkout, giving consumers the option to split purchases into four equal payments over time, interest-free and with no additional fees to consumer, It’ll be available to U.S. same as APT, SZL and Klarna, in one hand more awareness to the “Buy Now, Pay Later” in the US on the second hand this is a threat to the consumer financing providers since Shopify will offer the exact same solution, consumer will be offer to get a loan will need to get approved and if approved they will return it in 4 equal installments, merchants will receive the money upfront. The space is getting crowded and another provider with same solution for sure will impact/cannibalized others and since it's Shopify their relations with the merchants are from day 1, from the day the merchant decided to use their ecommerce platform it will be embedded in the checkout and will redundant the need to look for other solutions in the BNPL consumer financing space.
The only BNPL provider that will benefit from it will be SPT that are complimentary solution to all the 4 fortnightly installment consumer financing solutions since they offer a unique solution based on the existing credit consumer already have on their credit cards.
APT and SZL are at a risk to lose market share to Shopify that are very powerful in pushing their "homemade solutions" - as an example Shopify Payments (based on Stripe) that are the default payment gateway/processor solution of Shopify, if Merchants decide to use other option it will cost them extra % so usually they prefer to adopt Shopify Payments.
would love to hear APT and SZL reaction to this announcment.
APT Price at posting:
$44.51 Sentiment: Sell Disclosure: Not Held
