All that combined: how did competition between the top consumer debt contenders heat up over the long-awaited holiday shopping spree?
BNPL holiday firesale
Early results, estimated by PayPal CEO Dan Schulman, said in November that the BNPL option through the world’s oldest fintech jumped 400% year-over-year on the post-thanksgiving Black Friday alone.
“We did some 750,000 transactions in one day on Black Friday,” Schulman said.
Paypal recorded $1 billion in volume through BNPL in November. That was only the beginning.
While we await fourth-quarter earnings, 42matters, a tech company that built an App Watchlist platform to track mobile product usage, created a curated guide comparing the best of the industry. Here is what they found:
The Top 5 BNPL apps on mobile from December to Jan. 6, 2022
Split any purchase into four installments. No interest, no hard credit check.
Total Downloads: 1,000,000+
Android Downloads Over the Last 30 Days: 96,771
iOS Downloads Over the Last 30 Days: 91,411
Downloads between Nov. 1, 2021 and Jan. 1, 2022
Klarna was easily the most popular of the five Android apps, generating some 4.5M downloads in the selected time frame. Next came Affirm (789,218 downloads), Afterpay (649,988), Sezzle (265,490), and Zip (200,150).
Likewise, Klarna led the iOS apps with 4,380,057 downloads, followed by Afterpay 1,05M, Affirm 0.74M, Zip 162,811, and Sezzle 80,437.
But more remarkable is the fact that these BNPL apps seemed to trend in near-complete lockstep, spikes around Black Friday (Nov. 26), Cyber Monday (Nov. 29), mid-December, and Boxing Day (Dec. 26).
Klarna, Afterpay, Affirm, Zip, and Sezzle still make up roughly 70% of the market, and these download numbers are only part of the picture.
The purchases with BNPL on the Amazon and PayPal ecosystems or through partnerships like Affirm and Apple are not included.
The findings of the new credit option are not back yet, but one thing is for sure: consumers buy more when they have a BNPL option at checkout, and the product is still inspiring new members to enter the space.
It also might end up just a regular credit-checked small loan product: this past week, Equifax announced it would begin recording BNPL reports on their credit system in 2022.
Intensely energetic news reporter asking questions covering the collision between Silicon Valley, Wall Street, and everywhere in-between. Studied history at the University of Delaware, learned to write at the Review, and debanked.