PayPal enters BNPL sector, page-30

PayPal are not new in the BNPL market they have PayPal Credit (https://en.wikipedia.org/wiki/PayPal_Credit) from 2008, PayPal Credit loan file is larger than APT+ZIP+SZL+Klarna - they saw the success of APT and Affirm in the US with the 4 X 0% installments and they decided to join the game,

those are good news for SPT why ?

1. SPT serve a different market as we all know with longer terms and higher AOV and Zero risk
2. More players = More noise = more users = uplift in usage of BNPL solution

those are bad news to APT, SZL, Affirm, Zip why ?

1. PayPal will undercut the competition on fees because it already has a dominant, highly profitable payments network it can leverage. Eighty percent of the top 100 retailers in the U.S

2. PayPal seems to be a lower-cost hybrid. It won’t charge interest to the consumer or an additional fee to the retailer, but if you’re late on a payment, you’ll pay a fee of up to $10.

3. PayPal is already at every online checkout so no need to do another integration

Summary - my estimation is that in 2-3 years every online checkout will have

1. CreditCard payment option
2. Debit or direct payment from the bank account
3. Short term installment option (e.g..APT/PayPal,Zip,SZ, Etc..)
4. Splitit

APT/SZL/ZIP/Klarna and Affirm will need to compete with PayPal and cut their fees - we all know the meaning of it from earning perspectives.

for SPT its a win-win situation since she doesn't compete with those players and has a patent on their technology in the US and other places for the next 15-20 years.

Buying more SPT