Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’

The Wall Street Journal2021-09-16

Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards Shoppers spend more at Macy’s when they use installment plans offered through Klarna ...

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Comment（49）

wallence82
·2021-09-17
Lad PayPal now
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Tamashii
·2021-09-17
Good concept
Reply
1
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- Tamashii:
  but there is a risk behind
  2021-09-17
  Reply
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koolgal
·2021-09-17
Buy Now Pay Later aka Bnpl is here to stay. Consumers can stretch their dollars by paying in small instalments. Which Bnpl stock is your favourite?
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8
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- koolgal:
  ??
  2021-09-17
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- 滚股怪:
  Dont know
  2021-09-17
  Reply
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TrillionDM
·2021-09-17
Seen like is going up
Reply
1
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Zified
·2021-09-17
Ok
Reply
1
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ming22
·2021-09-17
Good for consumer
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1
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KYHBKO
·2021-09-17
a good offering to a segment of customers without credit card facilities. this will expand the customer base but there is always risk to such. in the end, the costs can be transferred back to both sellers and buyers. interesting development that deserves more monitoring.
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3
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JoelLee
·2021-09-17
Reply and comment. Thx
Reply
1
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- JoelLee:
  Hahahaiaiiaiaaopq
  2021-09-17
  Reply
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Yojessica
·2021-09-17
AFRM
Reply
2
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- YURICE:
  Yes
  2021-09-17
  Reply
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Greenhulk
·2021-09-17
[笑哭]
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2
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JasonChee
·2021-09-17
Low charge off ?
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3
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Cassjo
·2021-09-17
Okok
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1
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玉树临风英俊
·2021-09-17
?
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3
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丰人
·2021-09-17
Good.
Reply
4
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- Ag1718:
  ??
  2021-09-17
  Reply
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RS142
·2021-09-17
Good goal.
Reply
6
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- tig2021:
  yes
  2021-09-17
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- MengKeng:
  this is to "trap" clients to continue buying more. if they dun have the discipline and control, they will be broke one day
  2021-09-17
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HelloKitty55
·2021-09-17
Ok
Reply
5
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ASMH
·2021-09-17
Like
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4
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chongcs
·2021-09-17
ok
Reply
3
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vSup_puSv
·2021-09-17
Comment and like pls
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- julianttw:
  What's up
  2021-09-18
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- vSup_puSv:
  Ty
  2021-09-17
  Reply
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- BGTAN:
  ok
  2021-09-17
  Reply
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Cyberboyz
·2021-09-17
Credits on credits?
Reply
7
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So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-16 22:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna ...</p>\n\n<a href=\"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"M","symbol_name":"梅西百货","start_time":0,"source_url":"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10","article_id":"1168707929","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1168707929","pubTimestamp":1631802521,"columns":[],"sourceInfo":null,"weMediaInfo":null,"summary":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t ge","collect":0,"end_time":0,"defaultTopTitle":"wsj.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"M":"梅西百货","SQ":"Block","PYPL":"PayPal","V":"Visa","WMT":"沃尔玛","AFRM":"Affirm Holdings, Inc.","AMZN":"亚马逊"},"translate_title":"亚马逊正在这么做。沃尔玛也是。为什么零售业喜欢“先买后付”。","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AFRM":0.9,"AMZN":0.9,"M":0.9,"PYPL":0.9,"SQ":0.9,"V":0.9,"WMT":0.9},"content_text":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.\nAlexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.\nInstallment plans are back in style.PayPal Holdings Inc. last week said it was buying Japanese installment payment startup Paidy Inc., following Square Inc.’s $29 billion deal for Afterpay Ltd.Macy’s Inc. and Bed Bath & Beyond Inc. have added the option at checkout over the past year. Even Amazon.com Inc. is doing it.\nOne reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.\nAfterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings Inc. last year said purchases made with its payment plans were 85% larger, on average.\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.\n\n“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.\nMs. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.\n“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”\nBuy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.\nInterest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.\n\nMerchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.\nBuy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator Fair Isaac Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.\nAffirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.\nWorking with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.\n“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”\nAffirm facilitates new loans among other payment plans.\nAmazon and Walmart Inc. are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.\nAmazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase & Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.\nA desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.\n“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.\nSome banks now offer installment options on their credit cards.Citigroup Inc. saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.\nSynchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.\nWells Fargo & Co. and Bank of America Corp. are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa Inc. said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.","kind":"news","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":884182026,"gmtCreate":1631867618965,"gmtModify":1676530656741,"author":{"id":"3564307944903490","authorId":"3564307944903490","name":"wallence82","avatar":"https://static.tigerbbs.com/dea005ab03386f13fa25c505b9a3221a","vip":1,"crmLevel":7,"crmLevelSwitch":0,"idStr":"3564307944903490","authorIdStr":"3564307944903490"},"htmlText":"Lad PayPal now","listText":"Lad PayPal now","text":"Lad PayPal now","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/884182026","repostId":1168707929,"repostType":2,"repost":{"id":"1168707929","kind":"news","pubTimestamp":1631802521,"share":"https://ttm.financial/m/news/1168707929?lang=&edition=fundamental","pubTime":"2021-09-16 22:28","market":"us","language":"en","title":"Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’","url":"https://stock-news.laohu8.com/highlight/detail?id=1168707929","media":"The Wall Street Journal","summary":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t ge","content":"<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/108a4007d95b3e93e4d3fe6d678d8339\" tg-width=\"1290\" tg-height=\"859\" width=\"100%\" height=\"auto\"><span>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.</span></p>\n<p>Alexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.</p>\n<p>Installment plans are back&nbsp;in style.PayPal Holdings&nbsp;Inc.&nbsp;last week&nbsp;said it was buying Japanese installment payment startup&nbsp;Paidy Inc., following Square Inc.’s&nbsp;$29 billion deal&nbsp;for&nbsp;Afterpay&nbsp;Ltd.Macy’s&nbsp;Inc.&nbsp;and&nbsp;Bed Bath &amp; Beyond&nbsp;Inc.&nbsp;have added the option at checkout over the past year. Even&nbsp;Amazon.com&nbsp;Inc.&nbsp;is doing it.</p>\n<p>One reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.</p>\n<p>Afterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings&nbsp;Inc.&nbsp;last year said purchases made with its payment plans were 85% larger, on average.</p>\n<p>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.</p>\n<p><img src=\"https://static.tigerbbs.com/40620bab35c446816da175fb2334c05e\" tg-width=\"435\" tg-height=\"562\" width=\"100%\" height=\"auto\"></p>\n<p>“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.</p>\n<p>Ms. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.</p>\n<p>“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”</p>\n<p>Buy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.</p>\n<p>Interest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.</p>\n<p><img src=\"https://static.tigerbbs.com/223a1da79b30869fc443b06f41a959eb\" tg-width=\"441\" tg-height=\"556\" width=\"100%\" height=\"auto\"></p>\n<p>Merchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.</p>\n<p>Buy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator&nbsp;Fair Isaac&nbsp;Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.</p>\n<p>Affirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.</p>\n<p>Working with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.</p>\n<p>“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2f0a5ab7e1c7d6de154b68c230f13b49\" tg-width=\"1050\" tg-height=\"700\" width=\"100%\" height=\"auto\"><span>Affirm facilitates new loans among other payment plans.</span></p>\n<p>Amazon&nbsp;and&nbsp;Walmart&nbsp;Inc.&nbsp;are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.</p>\n<p>Amazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase &amp; Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.</p>\n<p>A desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with&nbsp;Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.</p>\n<p>“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.</p>\n<p>Some banks now offer installment options on their credit cards.Citigroup&nbsp;Inc.&nbsp;saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.</p>\n<p>Synchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.</p>\n<p>Wells Fargo &amp; Co. and&nbsp;Bank of America&nbsp;Corp.&nbsp;are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa&nbsp;Inc.&nbsp;said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-16 22:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna ...</p>\n\n<a href=\"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","AMZN":"亚马逊","AFRM":"Affirm Holdings, Inc.","PYPL":"PayPal","M":"梅西百货","WMT":"沃尔玛","V":"Visa"},"source_url":"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1168707929","content_text":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.\nAlexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.\nInstallment plans are back in style.PayPal Holdings Inc. last week said it was buying Japanese installment payment startup Paidy Inc., following Square Inc.’s $29 billion deal for Afterpay Ltd.Macy’s Inc. and Bed Bath & Beyond Inc. have added the option at checkout over the past year. Even Amazon.com Inc. is doing it.\nOne reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.\nAfterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings Inc. last year said purchases made with its payment plans were 85% larger, on average.\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.\n\n“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.\nMs. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.\n“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”\nBuy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.\nInterest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.\n\nMerchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.\nBuy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator Fair Isaac Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.\nAffirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.\nWorking with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.\n“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”\nAffirm facilitates new loans among other payment plans.\nAmazon and Walmart Inc. are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.\nAmazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase & Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.\nA desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.\n“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.\nSome banks now offer installment options on their credit cards.Citigroup Inc. saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.\nSynchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.\nWells Fargo & Co. and Bank of America Corp. are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa Inc. said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":884365117,"gmtCreate":1631858296639,"gmtModify":1676530654365,"author":{"id":"4087109479010510","authorId":"4087109479010510","name":"Tamashii","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"4087109479010510","authorIdStr":"4087109479010510"},"htmlText":"Good concept","listText":"Good concept","text":"Good concept","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/884365117","repostId":1168707929,"repostType":4,"repost":{"id":"1168707929","kind":"news","pubTimestamp":1631802521,"share":"https://ttm.financial/m/news/1168707929?lang=&edition=fundamental","pubTime":"2021-09-16 22:28","market":"us","language":"en","title":"Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’","url":"https://stock-news.laohu8.com/highlight/detail?id=1168707929","media":"The Wall Street Journal","summary":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t ge","content":"<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/108a4007d95b3e93e4d3fe6d678d8339\" tg-width=\"1290\" tg-height=\"859\" width=\"100%\" height=\"auto\"><span>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.</span></p>\n<p>Alexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.</p>\n<p>Installment plans are back&nbsp;in style.PayPal Holdings&nbsp;Inc.&nbsp;last week&nbsp;said it was buying Japanese installment payment startup&nbsp;Paidy Inc., following Square Inc.’s&nbsp;$29 billion deal&nbsp;for&nbsp;Afterpay&nbsp;Ltd.Macy’s&nbsp;Inc.&nbsp;and&nbsp;Bed Bath &amp; Beyond&nbsp;Inc.&nbsp;have added the option at checkout over the past year. Even&nbsp;Amazon.com&nbsp;Inc.&nbsp;is doing it.</p>\n<p>One reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.</p>\n<p>Afterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings&nbsp;Inc.&nbsp;last year said purchases made with its payment plans were 85% larger, on average.</p>\n<p>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.</p>\n<p><img src=\"https://static.tigerbbs.com/40620bab35c446816da175fb2334c05e\" tg-width=\"435\" tg-height=\"562\" width=\"100%\" height=\"auto\"></p>\n<p>“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.</p>\n<p>Ms. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.</p>\n<p>“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”</p>\n<p>Buy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.</p>\n<p>Interest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.</p>\n<p><img src=\"https://static.tigerbbs.com/223a1da79b30869fc443b06f41a959eb\" tg-width=\"441\" tg-height=\"556\" width=\"100%\" height=\"auto\"></p>\n<p>Merchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.</p>\n<p>Buy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator&nbsp;Fair Isaac&nbsp;Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.</p>\n<p>Affirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.</p>\n<p>Working with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.</p>\n<p>“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2f0a5ab7e1c7d6de154b68c230f13b49\" tg-width=\"1050\" tg-height=\"700\" width=\"100%\" height=\"auto\"><span>Affirm facilitates new loans among other payment plans.</span></p>\n<p>Amazon&nbsp;and&nbsp;Walmart&nbsp;Inc.&nbsp;are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.</p>\n<p>Amazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase &amp; Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.</p>\n<p>A desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with&nbsp;Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.</p>\n<p>“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.</p>\n<p>Some banks now offer installment options on their credit cards.Citigroup&nbsp;Inc.&nbsp;saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.</p>\n<p>Synchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.</p>\n<p>Wells Fargo &amp; Co. and&nbsp;Bank of America&nbsp;Corp.&nbsp;are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa&nbsp;Inc.&nbsp;said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-16 22:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna ...</p>\n\n<a href=\"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","AMZN":"亚马逊","AFRM":"Affirm Holdings, Inc.","PYPL":"PayPal","M":"梅西百货","WMT":"沃尔玛","V":"Visa"},"source_url":"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1168707929","content_text":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.\nAlexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.\nInstallment plans are back in style.PayPal Holdings Inc. last week said it was buying Japanese installment payment startup Paidy Inc., following Square Inc.’s $29 billion deal for Afterpay Ltd.Macy’s Inc. and Bed Bath & Beyond Inc. have added the option at checkout over the past year. Even Amazon.com Inc. is doing it.\nOne reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.\nAfterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings Inc. last year said purchases made with its payment plans were 85% larger, on average.\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.\n\n“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.\nMs. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.\n“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”\nBuy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.\nInterest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.\n\nMerchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.\nBuy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator Fair Isaac Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.\nAffirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.\nWorking with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.\n“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”\nAffirm facilitates new loans among other payment plans.\nAmazon and Walmart Inc. are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.\nAmazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase & Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.\nA desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.\n“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.\nSome banks now offer installment options on their credit cards.Citigroup Inc. saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.\nSynchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.\nWells Fargo & Co. and Bank of America Corp. are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa Inc. said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5900326,"gmtCreate":1631858339198,"gmtModify":1663234010436,"authorId":4087109479010510,"author":{"id":4087109479010510,"idStr":"4087109479010510","authorId":4087109479010510,"name":"Tamashii","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":884365117,"type":1,"supId":0,"prevId":0,"content":"but there is a risk behind","text":"but there is a risk behind","html":"but there is a risk behind"}],"langContent":"EN"},{"id":884396359,"gmtCreate":1631853743471,"gmtModify":1676530653155,"author":{"id":"3559581955535845","authorId":"3559581955535845","name":"koolgal","avatar":"https://static.tigerbbs.com/c05274d88ffc0434623e57350c52c70a","vip":2,"hat":"https://static.tigerbbs.com/0a8758340a08196056f8bc1e54805193","crmLevel":6,"crmLevelSwitch":1,"idStr":"3559581955535845","authorIdStr":"3559581955535845"},"htmlText":"Buy Now Pay&nbsp; Later aka Bnpl is here to stay. Consumers can stretch their dollars by paying in small instalments.&nbsp; Which Bnpl stock is your favourite?&nbsp;","listText":"Buy Now Pay&nbsp; Later aka Bnpl is here to stay. Consumers can stretch their dollars by paying in small instalments.&nbsp; Which Bnpl stock is your favourite?&nbsp;","text":"Buy Now Pay Later aka Bnpl is here to stay. Consumers can stretch their dollars by paying in small instalments. Which Bnpl stock is your favourite?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":8,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/884396359","repostId":1168707929,"repostType":4,"repost":{"id":"1168707929","kind":"news","pubTimestamp":1631802521,"share":"https://ttm.financial/m/news/1168707929?lang=&edition=fundamental","pubTime":"2021-09-16 22:28","market":"us","language":"en","title":"Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’","url":"https://stock-news.laohu8.com/highlight/detail?id=1168707929","media":"The Wall Street Journal","summary":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t ge","content":"<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/108a4007d95b3e93e4d3fe6d678d8339\" tg-width=\"1290\" tg-height=\"859\" width=\"100%\" height=\"auto\"><span>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.</span></p>\n<p>Alexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.</p>\n<p>Installment plans are back&nbsp;in style.PayPal Holdings&nbsp;Inc.&nbsp;last week&nbsp;said it was buying Japanese installment payment startup&nbsp;Paidy Inc., following Square Inc.’s&nbsp;$29 billion deal&nbsp;for&nbsp;Afterpay&nbsp;Ltd.Macy’s&nbsp;Inc.&nbsp;and&nbsp;Bed Bath &amp; Beyond&nbsp;Inc.&nbsp;have added the option at checkout over the past year. Even&nbsp;Amazon.com&nbsp;Inc.&nbsp;is doing it.</p>\n<p>One reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.</p>\n<p>Afterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings&nbsp;Inc.&nbsp;last year said purchases made with its payment plans were 85% larger, on average.</p>\n<p>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.</p>\n<p><img src=\"https://static.tigerbbs.com/40620bab35c446816da175fb2334c05e\" tg-width=\"435\" tg-height=\"562\" width=\"100%\" height=\"auto\"></p>\n<p>“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.</p>\n<p>Ms. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.</p>\n<p>“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”</p>\n<p>Buy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.</p>\n<p>Interest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.</p>\n<p><img src=\"https://static.tigerbbs.com/223a1da79b30869fc443b06f41a959eb\" tg-width=\"441\" tg-height=\"556\" width=\"100%\" height=\"auto\"></p>\n<p>Merchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.</p>\n<p>Buy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator&nbsp;Fair Isaac&nbsp;Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.</p>\n<p>Affirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.</p>\n<p>Working with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.</p>\n<p>“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2f0a5ab7e1c7d6de154b68c230f13b49\" tg-width=\"1050\" tg-height=\"700\" width=\"100%\" height=\"auto\"><span>Affirm facilitates new loans among other payment plans.</span></p>\n<p>Amazon&nbsp;and&nbsp;Walmart&nbsp;Inc.&nbsp;are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.</p>\n<p>Amazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase &amp; Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.</p>\n<p>A desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with&nbsp;Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.</p>\n<p>“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.</p>\n<p>Some banks now offer installment options on their credit cards.Citigroup&nbsp;Inc.&nbsp;saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.</p>\n<p>Synchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.</p>\n<p>Wells Fargo &amp; Co. and&nbsp;Bank of America&nbsp;Corp.&nbsp;are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa&nbsp;Inc.&nbsp;said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-16 22:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna ...</p>\n\n<a href=\"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","AMZN":"亚马逊","AFRM":"Affirm Holdings, Inc.","PYPL":"PayPal","M":"梅西百货","WMT":"沃尔玛","V":"Visa"},"source_url":"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1168707929","content_text":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.\nAlexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.\nInstallment plans are back in style.PayPal Holdings Inc. last week said it was buying Japanese installment payment startup Paidy Inc., following Square Inc.’s $29 billion deal for Afterpay Ltd.Macy’s Inc. and Bed Bath & Beyond Inc. have added the option at checkout over the past year. Even Amazon.com Inc. is doing it.\nOne reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.\nAfterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings Inc. last year said purchases made with its payment plans were 85% larger, on average.\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.\n\n“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.\nMs. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.\n“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”\nBuy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.\nInterest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.\n\nMerchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.\nBuy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator Fair Isaac Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.\nAffirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.\nWorking with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.\n“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”\nAffirm facilitates new loans among other payment plans.\nAmazon and Walmart Inc. are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.\nAmazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase & Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.\nA desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.\n“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.\nSome banks now offer installment options on their credit cards.Citigroup Inc. saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.\nSynchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.\nWells Fargo & Co. and Bank of America Corp. are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa Inc. said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5902427,"gmtCreate":1631874508683,"gmtModify":1663234020753,"authorId":3559581955535845,"author":{"id":3559581955535845,"idStr":"3559581955535845","authorId":3559581955535845,"name":"koolgal","avatar":"https://static.tigerbbs.com/c05274d88ffc0434623e57350c52c70a","vip":2,"currentWearingBadge":{"badgeId":"c4ee29b388ff41cc8462b3b7ea00d1e2-1","templateUuid":"c4ee29b388ff41cc8462b3b7ea00d1e2","name":"Monthly Top Contributor","description":"Top 3 Contributors with the most and best Editor's Picks every month","bigImgUrl":"https://static.tigerbbs.com/b0cad6192443c33dca826a001250fbd4","smallImgUrl":"https://static.tigerbbs.com/5ccd98c646815ce7610b0df338e060cc","redirectLinkEnabled":1,"redirectLink":"https://ttm.financial/TW/9000980585","hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.04.02","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":2003},"crmLevel":6,"crmLevelSwitch":1,"individualDisplayBadges":[{"badgeId":"9427a906234c4b18a82ec3d7730b7fa8-1","templateUuid":"9427a906234c4b18a82ec3d7730b7fa8","name":"Star Contributor","description":"Have published 3 or more picked posts, and have published at least one picked post and participated in comments within 30 days","bigImgUrl":"https://community-static.tradeup.com/news/1866dcf97a73be1c330f85862546aedc","smallImgUrl":"https://community-static.tradeup.com/news/4f5c5fa8e2c7683bb5a7fce8753ee456","redirectLinkEnabled":1,"redirectLink":"https://ttm.financial/activity/market/2023/star-contributors/","hasAllocated":1,"isWearing":0,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.12.22","individualDisplayEnabled":1,"backgroundColor":{"dark":"#675a37","tint":"#f9ebc2"},"fontColor":{"dark":"#ffffff","tint":"#ab7a0e"},"individualDisplaySort":0,"categoryType":2007}]},"repliedAuthorId":0,"objectId":884396359,"type":1,"supId":5902128,"prevId":0,"content":"??","text":"??","html":"??"},{"id":5902128,"gmtCreate":1631872454511,"gmtModify":1663234020040,"authorId":4091089381144950,"author":{"id":4091089381144950,"idStr":"4091089381144950","authorId":4091089381144950,"name":"滚股怪","avatar":"https://static.tigerbbs.com/b67621b4133ca0db91bff9766152a448","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":884396359,"type":1,"supId":0,"prevId":0,"content":"Dont know","text":"Dont know","html":"Dont know"}],"langContent":"EN"},{"id":884945471,"gmtCreate":1631850697393,"gmtModify":1676530652565,"author":{"id":"4088055457160620","authorId":"4088055457160620","name":"TrillionDM","avatar":"https://static.tigerbbs.com/2776ee51111cd85a7a6701f67bed0796","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"4088055457160620","authorIdStr":"4088055457160620"},"htmlText":"Seen like is going up","listText":"Seen like is going up","text":"Seen like is going up","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/884945471","repostId":1168707929,"repostType":4,"repost":{"id":"1168707929","kind":"news","pubTimestamp":1631802521,"share":"https://ttm.financial/m/news/1168707929?lang=&edition=fundamental","pubTime":"2021-09-16 22:28","market":"us","language":"en","title":"Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’","url":"https://stock-news.laohu8.com/highlight/detail?id=1168707929","media":"The Wall Street Journal","summary":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t ge","content":"<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/108a4007d95b3e93e4d3fe6d678d8339\" tg-width=\"1290\" tg-height=\"859\" width=\"100%\" height=\"auto\"><span>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.</span></p>\n<p>Alexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.</p>\n<p>Installment plans are back&nbsp;in style.PayPal Holdings&nbsp;Inc.&nbsp;last week&nbsp;said it was buying Japanese installment payment startup&nbsp;Paidy Inc., following Square Inc.’s&nbsp;$29 billion deal&nbsp;for&nbsp;Afterpay&nbsp;Ltd.Macy’s&nbsp;Inc.&nbsp;and&nbsp;Bed Bath &amp; Beyond&nbsp;Inc.&nbsp;have added the option at checkout over the past year. Even&nbsp;Amazon.com&nbsp;Inc.&nbsp;is doing it.</p>\n<p>One reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.</p>\n<p>Afterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings&nbsp;Inc.&nbsp;last year said purchases made with its payment plans were 85% larger, on average.</p>\n<p>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.</p>\n<p><img src=\"https://static.tigerbbs.com/40620bab35c446816da175fb2334c05e\" tg-width=\"435\" tg-height=\"562\" width=\"100%\" height=\"auto\"></p>\n<p>“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.</p>\n<p>Ms. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.</p>\n<p>“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”</p>\n<p>Buy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.</p>\n<p>Interest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.</p>\n<p><img src=\"https://static.tigerbbs.com/223a1da79b30869fc443b06f41a959eb\" tg-width=\"441\" tg-height=\"556\" width=\"100%\" height=\"auto\"></p>\n<p>Merchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.</p>\n<p>Buy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator&nbsp;Fair Isaac&nbsp;Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.</p>\n<p>Affirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.</p>\n<p>Working with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.</p>\n<p>“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2f0a5ab7e1c7d6de154b68c230f13b49\" tg-width=\"1050\" tg-height=\"700\" width=\"100%\" height=\"auto\"><span>Affirm facilitates new loans among other payment plans.</span></p>\n<p>Amazon&nbsp;and&nbsp;Walmart&nbsp;Inc.&nbsp;are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.</p>\n<p>Amazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase &amp; Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.</p>\n<p>A desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with&nbsp;Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.</p>\n<p>“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.</p>\n<p>Some banks now offer installment options on their credit cards.Citigroup&nbsp;Inc.&nbsp;saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.</p>\n<p>Synchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.</p>\n<p>Wells Fargo &amp; Co. and&nbsp;Bank of America&nbsp;Corp.&nbsp;are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa&nbsp;Inc.&nbsp;said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-16 22:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna ...</p>\n\n<a href=\"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","AMZN":"亚马逊","AFRM":"Affirm Holdings, Inc.","PYPL":"PayPal","M":"梅西百货","WMT":"沃尔玛","V":"Visa"},"source_url":"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1168707929","content_text":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.\nAlexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.\nInstallment plans are back in style.PayPal Holdings Inc. last week said it was buying Japanese installment payment startup Paidy Inc., following Square Inc.’s $29 billion deal for Afterpay Ltd.Macy’s Inc. and Bed Bath & Beyond Inc. have added the option at checkout over the past year. Even Amazon.com Inc. is doing it.\nOne reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.\nAfterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings Inc. last year said purchases made with its payment plans were 85% larger, on average.\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.\n\n“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.\nMs. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.\n“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”\nBuy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.\nInterest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.\n\nMerchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.\nBuy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator Fair Isaac Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.\nAffirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.\nWorking with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.\n“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”\nAffirm facilitates new loans among other payment plans.\nAmazon and Walmart Inc. are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.\nAmazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase & Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.\nA desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.\n“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.\nSome banks now offer installment options on their credit cards.Citigroup Inc. saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.\nSynchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.\nWells Fargo & Co. and Bank of America Corp. are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa Inc. said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":884941662,"gmtCreate":1631850342356,"gmtModify":1676530652404,"author":{"id":"3575931476822699","authorId":"3575931476822699","name":"Zified","avatar":"https://static.tigerbbs.com/2504476ab9db7b38867d7694e9c634e7","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3575931476822699","authorIdStr":"3575931476822699"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/884941662","repostId":1168707929,"repostType":4,"repost":{"id":"1168707929","kind":"news","pubTimestamp":1631802521,"share":"https://ttm.financial/m/news/1168707929?lang=&edition=fundamental","pubTime":"2021-09-16 22:28","market":"us","language":"en","title":"Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’","url":"https://stock-news.laohu8.com/highlight/detail?id=1168707929","media":"The Wall Street Journal","summary":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t ge","content":"<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/108a4007d95b3e93e4d3fe6d678d8339\" tg-width=\"1290\" tg-height=\"859\" width=\"100%\" height=\"auto\"><span>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.</span></p>\n<p>Alexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.</p>\n<p>Installment plans are back&nbsp;in style.PayPal Holdings&nbsp;Inc.&nbsp;last week&nbsp;said it was buying Japanese installment payment startup&nbsp;Paidy Inc., following Square Inc.’s&nbsp;$29 billion deal&nbsp;for&nbsp;Afterpay&nbsp;Ltd.Macy’s&nbsp;Inc.&nbsp;and&nbsp;Bed Bath &amp; Beyond&nbsp;Inc.&nbsp;have added the option at checkout over the past year. Even&nbsp;Amazon.com&nbsp;Inc.&nbsp;is doing it.</p>\n<p>One reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.</p>\n<p>Afterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings&nbsp;Inc.&nbsp;last year said purchases made with its payment plans were 85% larger, on average.</p>\n<p>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.</p>\n<p><img src=\"https://static.tigerbbs.com/40620bab35c446816da175fb2334c05e\" tg-width=\"435\" tg-height=\"562\" width=\"100%\" height=\"auto\"></p>\n<p>“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.</p>\n<p>Ms. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.</p>\n<p>“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”</p>\n<p>Buy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.</p>\n<p>Interest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.</p>\n<p><img src=\"https://static.tigerbbs.com/223a1da79b30869fc443b06f41a959eb\" tg-width=\"441\" tg-height=\"556\" width=\"100%\" height=\"auto\"></p>\n<p>Merchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.</p>\n<p>Buy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator&nbsp;Fair Isaac&nbsp;Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.</p>\n<p>Affirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.</p>\n<p>Working with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.</p>\n<p>“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2f0a5ab7e1c7d6de154b68c230f13b49\" tg-width=\"1050\" tg-height=\"700\" width=\"100%\" height=\"auto\"><span>Affirm facilitates new loans among other payment plans.</span></p>\n<p>Amazon&nbsp;and&nbsp;Walmart&nbsp;Inc.&nbsp;are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.</p>\n<p>Amazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase &amp; Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.</p>\n<p>A desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with&nbsp;Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.</p>\n<p>“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.</p>\n<p>Some banks now offer installment options on their credit cards.Citigroup&nbsp;Inc.&nbsp;saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.</p>\n<p>Synchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.</p>\n<p>Wells Fargo &amp; Co. and&nbsp;Bank of America&nbsp;Corp.&nbsp;are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa&nbsp;Inc.&nbsp;said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-16 22:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna ...</p>\n\n<a href=\"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","AMZN":"亚马逊","AFRM":"Affirm Holdings, Inc.","PYPL":"PayPal","M":"梅西百货","WMT":"沃尔玛","V":"Visa"},"source_url":"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1168707929","content_text":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.\nAlexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.\nInstallment plans are back in style.PayPal Holdings Inc. last week said it was buying Japanese installment payment startup Paidy Inc., following Square Inc.’s $29 billion deal for Afterpay Ltd.Macy’s Inc. and Bed Bath & Beyond Inc. have added the option at checkout over the past year. Even Amazon.com Inc. is doing it.\nOne reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.\nAfterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings Inc. last year said purchases made with its payment plans were 85% larger, on average.\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.\n\n“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.\nMs. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.\n“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”\nBuy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.\nInterest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.\n\nMerchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.\nBuy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator Fair Isaac Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.\nAffirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.\nWorking with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.\n“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”\nAffirm facilitates new loans among other payment plans.\nAmazon and Walmart Inc. are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.\nAmazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase & Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.\nA desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.\n“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.\nSome banks now offer installment options on their credit cards.Citigroup Inc. saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.\nSynchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.\nWells Fargo & Co. and Bank of America Corp. are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa Inc. said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":884074591,"gmtCreate":1631843185913,"gmtModify":1676530650131,"author":{"id":"3571044771112848","authorId":"3571044771112848","name":"ming22","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3571044771112848","authorIdStr":"3571044771112848"},"htmlText":"Good for consumer&nbsp;","listText":"Good for consumer&nbsp;","text":"Good for consumer","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/884074591","repostId":1168707929,"repostType":4,"repost":{"id":"1168707929","kind":"news","pubTimestamp":1631802521,"share":"https://ttm.financial/m/news/1168707929?lang=&edition=fundamental","pubTime":"2021-09-16 22:28","market":"us","language":"en","title":"Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’","url":"https://stock-news.laohu8.com/highlight/detail?id=1168707929","media":"The Wall Street Journal","summary":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t ge","content":"<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/108a4007d95b3e93e4d3fe6d678d8339\" tg-width=\"1290\" tg-height=\"859\" width=\"100%\" height=\"auto\"><span>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.</span></p>\n<p>Alexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.</p>\n<p>Installment plans are back&nbsp;in style.PayPal Holdings&nbsp;Inc.&nbsp;last week&nbsp;said it was buying Japanese installment payment startup&nbsp;Paidy Inc., following Square Inc.’s&nbsp;$29 billion deal&nbsp;for&nbsp;Afterpay&nbsp;Ltd.Macy’s&nbsp;Inc.&nbsp;and&nbsp;Bed Bath &amp; Beyond&nbsp;Inc.&nbsp;have added the option at checkout over the past year. Even&nbsp;Amazon.com&nbsp;Inc.&nbsp;is doing it.</p>\n<p>One reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.</p>\n<p>Afterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings&nbsp;Inc.&nbsp;last year said purchases made with its payment plans were 85% larger, on average.</p>\n<p>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.</p>\n<p><img src=\"https://static.tigerbbs.com/40620bab35c446816da175fb2334c05e\" tg-width=\"435\" tg-height=\"562\" width=\"100%\" height=\"auto\"></p>\n<p>“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.</p>\n<p>Ms. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.</p>\n<p>“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”</p>\n<p>Buy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.</p>\n<p>Interest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.</p>\n<p><img src=\"https://static.tigerbbs.com/223a1da79b30869fc443b06f41a959eb\" tg-width=\"441\" tg-height=\"556\" width=\"100%\" height=\"auto\"></p>\n<p>Merchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.</p>\n<p>Buy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator&nbsp;Fair Isaac&nbsp;Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.</p>\n<p>Affirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.</p>\n<p>Working with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.</p>\n<p>“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2f0a5ab7e1c7d6de154b68c230f13b49\" tg-width=\"1050\" tg-height=\"700\" width=\"100%\" height=\"auto\"><span>Affirm facilitates new loans among other payment plans.</span></p>\n<p>Amazon&nbsp;and&nbsp;Walmart&nbsp;Inc.&nbsp;are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.</p>\n<p>Amazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase &amp; Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.</p>\n<p>A desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with&nbsp;Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.</p>\n<p>“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.</p>\n<p>Some banks now offer installment options on their credit cards.Citigroup&nbsp;Inc.&nbsp;saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.</p>\n<p>Synchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.</p>\n<p>Wells Fargo &amp; Co. and&nbsp;Bank of America&nbsp;Corp.&nbsp;are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa&nbsp;Inc.&nbsp;said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-16 22:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna ...</p>\n\n<a href=\"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","AMZN":"亚马逊","AFRM":"Affirm Holdings, Inc.","PYPL":"PayPal","M":"梅西百货","WMT":"沃尔玛","V":"Visa"},"source_url":"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1168707929","content_text":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.\nAlexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.\nInstallment plans are back in style.PayPal Holdings Inc. last week said it was buying Japanese installment payment startup Paidy Inc., following Square Inc.’s $29 billion deal for Afterpay Ltd.Macy’s Inc. and Bed Bath & Beyond Inc. have added the option at checkout over the past year. Even Amazon.com Inc. is doing it.\nOne reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.\nAfterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings Inc. last year said purchases made with its payment plans were 85% larger, on average.\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.\n\n“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.\nMs. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.\n“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”\nBuy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.\nInterest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.\n\nMerchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.\nBuy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator Fair Isaac Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.\nAffirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.\nWorking with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.\n“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”\nAffirm facilitates new loans among other payment plans.\nAmazon and Walmart Inc. are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.\nAmazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase & Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.\nA desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.\n“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.\nSome banks now offer installment options on their credit cards.Citigroup Inc. saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.\nSynchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.\nWells Fargo & Co. and Bank of America Corp. are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa Inc. said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":884014238,"gmtCreate":1631839512524,"gmtModify":1676530648558,"author":{"id":"3574381076586256","authorId":"3574381076586256","name":"KYHBKO","avatar":"https://static.tigerbbs.com/c3bcbc7f9a10836dea92afc94bf39b5b","vip":2,"crmLevel":4,"crmLevelSwitch":0,"idStr":"3574381076586256","authorIdStr":"3574381076586256"},"htmlText":"a good offering to a segment of customers without credit card facilities. this will expand the customer base but there is always risk to such. in the end, the costs can be transferred back to both sellers and buyers. interesting development that deserves more monitoring.&nbsp;","listText":"a good offering to a segment of customers without credit card facilities. this will expand the customer base but there is always risk to such. in the end, the costs can be transferred back to both sellers and buyers. interesting development that deserves more monitoring.&nbsp;","text":"a good offering to a segment of customers without credit card facilities. this will expand the customer base but there is always risk to such. in the end, the costs can be transferred back to both sellers and buyers. interesting development that deserves more monitoring.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/884014238","repostId":1168707929,"repostType":4,"repost":{"id":"1168707929","kind":"news","pubTimestamp":1631802521,"share":"https://ttm.financial/m/news/1168707929?lang=&edition=fundamental","pubTime":"2021-09-16 22:28","market":"us","language":"en","title":"Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’","url":"https://stock-news.laohu8.com/highlight/detail?id=1168707929","media":"The Wall Street Journal","summary":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t ge","content":"<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/108a4007d95b3e93e4d3fe6d678d8339\" tg-width=\"1290\" tg-height=\"859\" width=\"100%\" height=\"auto\"><span>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.</span></p>\n<p>Alexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.</p>\n<p>Installment plans are back&nbsp;in style.PayPal Holdings&nbsp;Inc.&nbsp;last week&nbsp;said it was buying Japanese installment payment startup&nbsp;Paidy Inc., following Square Inc.’s&nbsp;$29 billion deal&nbsp;for&nbsp;Afterpay&nbsp;Ltd.Macy’s&nbsp;Inc.&nbsp;and&nbsp;Bed Bath &amp; Beyond&nbsp;Inc.&nbsp;have added the option at checkout over the past year. Even&nbsp;Amazon.com&nbsp;Inc.&nbsp;is doing it.</p>\n<p>One reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.</p>\n<p>Afterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings&nbsp;Inc.&nbsp;last year said purchases made with its payment plans were 85% larger, on average.</p>\n<p>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.</p>\n<p><img src=\"https://static.tigerbbs.com/40620bab35c446816da175fb2334c05e\" tg-width=\"435\" tg-height=\"562\" width=\"100%\" height=\"auto\"></p>\n<p>“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.</p>\n<p>Ms. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.</p>\n<p>“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”</p>\n<p>Buy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.</p>\n<p>Interest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.</p>\n<p><img src=\"https://static.tigerbbs.com/223a1da79b30869fc443b06f41a959eb\" tg-width=\"441\" tg-height=\"556\" width=\"100%\" height=\"auto\"></p>\n<p>Merchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.</p>\n<p>Buy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator&nbsp;Fair Isaac&nbsp;Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.</p>\n<p>Affirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.</p>\n<p>Working with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.</p>\n<p>“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2f0a5ab7e1c7d6de154b68c230f13b49\" tg-width=\"1050\" tg-height=\"700\" width=\"100%\" height=\"auto\"><span>Affirm facilitates new loans among other payment plans.</span></p>\n<p>Amazon&nbsp;and&nbsp;Walmart&nbsp;Inc.&nbsp;are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.</p>\n<p>Amazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase &amp; Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.</p>\n<p>A desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with&nbsp;Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.</p>\n<p>“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.</p>\n<p>Some banks now offer installment options on their credit cards.Citigroup&nbsp;Inc.&nbsp;saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.</p>\n<p>Synchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.</p>\n<p>Wells Fargo &amp; Co. and&nbsp;Bank of America&nbsp;Corp.&nbsp;are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa&nbsp;Inc.&nbsp;said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-16 22:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna ...</p>\n\n<a href=\"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","AMZN":"亚马逊","AFRM":"Affirm Holdings, Inc.","PYPL":"PayPal","M":"梅西百货","WMT":"沃尔玛","V":"Visa"},"source_url":"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1168707929","content_text":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.\nAlexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.\nInstallment plans are back in style.PayPal Holdings Inc. last week said it was buying Japanese installment payment startup Paidy Inc., following Square Inc.’s $29 billion deal for Afterpay Ltd.Macy’s Inc. and Bed Bath & Beyond Inc. have added the option at checkout over the past year. Even Amazon.com Inc. is doing it.\nOne reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.\nAfterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings Inc. last year said purchases made with its payment plans were 85% larger, on average.\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.\n\n“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.\nMs. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.\n“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”\nBuy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.\nInterest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.\n\nMerchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.\nBuy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator Fair Isaac Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.\nAffirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.\nWorking with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.\n“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”\nAffirm facilitates new loans among other payment plans.\nAmazon and Walmart Inc. are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.\nAmazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase & Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.\nA desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.\n“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.\nSome banks now offer installment options on their credit cards.Citigroup Inc. saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.\nSynchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.\nWells Fargo & Co. and Bank of America Corp. are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa Inc. said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":884030482,"gmtCreate":1631838474346,"gmtModify":1676530648182,"author":{"id":"3579882572140125","authorId":"3579882572140125","name":"JoelLee","avatar":"https://static.tigerbbs.com/e1f6c92b13d94cba61906c07dbbb2ab6","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":1,"crmLevelSwitch":1,"idStr":"3579882572140125","authorIdStr":"3579882572140125"},"htmlText":"Reply and comment. Thx&nbsp;","listText":"Reply and comment. Thx&nbsp;","text":"Reply and comment. Thx","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/884030482","repostId":1168707929,"repostType":4,"repost":{"id":"1168707929","kind":"news","pubTimestamp":1631802521,"share":"https://ttm.financial/m/news/1168707929?lang=&edition=fundamental","pubTime":"2021-09-16 22:28","market":"us","language":"en","title":"Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’","url":"https://stock-news.laohu8.com/highlight/detail?id=1168707929","media":"The Wall Street Journal","summary":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t ge","content":"<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/108a4007d95b3e93e4d3fe6d678d8339\" tg-width=\"1290\" tg-height=\"859\" width=\"100%\" height=\"auto\"><span>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.</span></p>\n<p>Alexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.</p>\n<p>Installment plans are back&nbsp;in style.PayPal Holdings&nbsp;Inc.&nbsp;last week&nbsp;said it was buying Japanese installment payment startup&nbsp;Paidy Inc., following Square Inc.’s&nbsp;$29 billion deal&nbsp;for&nbsp;Afterpay&nbsp;Ltd.Macy’s&nbsp;Inc.&nbsp;and&nbsp;Bed Bath &amp; Beyond&nbsp;Inc.&nbsp;have added the option at checkout over the past year. Even&nbsp;Amazon.com&nbsp;Inc.&nbsp;is doing it.</p>\n<p>One reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.</p>\n<p>Afterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings&nbsp;Inc.&nbsp;last year said purchases made with its payment plans were 85% larger, on average.</p>\n<p>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.</p>\n<p><img src=\"https://static.tigerbbs.com/40620bab35c446816da175fb2334c05e\" tg-width=\"435\" tg-height=\"562\" width=\"100%\" height=\"auto\"></p>\n<p>“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.</p>\n<p>Ms. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.</p>\n<p>“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”</p>\n<p>Buy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.</p>\n<p>Interest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.</p>\n<p><img src=\"https://static.tigerbbs.com/223a1da79b30869fc443b06f41a959eb\" tg-width=\"441\" tg-height=\"556\" width=\"100%\" height=\"auto\"></p>\n<p>Merchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.</p>\n<p>Buy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator&nbsp;Fair Isaac&nbsp;Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.</p>\n<p>Affirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.</p>\n<p>Working with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.</p>\n<p>“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2f0a5ab7e1c7d6de154b68c230f13b49\" tg-width=\"1050\" tg-height=\"700\" width=\"100%\" height=\"auto\"><span>Affirm facilitates new loans among other payment plans.</span></p>\n<p>Amazon&nbsp;and&nbsp;Walmart&nbsp;Inc.&nbsp;are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.</p>\n<p>Amazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase &amp; Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.</p>\n<p>A desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with&nbsp;Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.</p>\n<p>“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.</p>\n<p>Some banks now offer installment options on their credit cards.Citigroup&nbsp;Inc.&nbsp;saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.</p>\n<p>Synchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.</p>\n<p>Wells Fargo &amp; Co. and&nbsp;Bank of America&nbsp;Corp.&nbsp;are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa&nbsp;Inc.&nbsp;said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-16 22:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna ...</p>\n\n<a href=\"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","AMZN":"亚马逊","AFRM":"Affirm Holdings, Inc.","PYPL":"PayPal","M":"梅西百货","WMT":"沃尔玛","V":"Visa"},"source_url":"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1168707929","content_text":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.\nAlexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.\nInstallment plans are back in style.PayPal Holdings Inc. last week said it was buying Japanese installment payment startup Paidy Inc., following Square Inc.’s $29 billion deal for Afterpay Ltd.Macy’s Inc. and Bed Bath & Beyond Inc. have added the option at checkout over the past year. Even Amazon.com Inc. is doing it.\nOne reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.\nAfterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings Inc. last year said purchases made with its payment plans were 85% larger, on average.\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.\n\n“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.\nMs. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.\n“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”\nBuy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.\nInterest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.\n\nMerchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.\nBuy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator Fair Isaac Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.\nAffirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.\nWorking with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.\n“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”\nAffirm facilitates new loans among other payment plans.\nAmazon and Walmart Inc. are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.\nAmazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase & Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.\nA desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.\n“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.\nSome banks now offer installment options on their credit cards.Citigroup Inc. saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.\nSynchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.\nWells Fargo & Co. and Bank of America Corp. are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa Inc. said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5896483,"gmtCreate":1631838481116,"gmtModify":1663233999032,"authorId":3579882572140125,"author":{"id":3579882572140125,"idStr":"3579882572140125","authorId":3579882572140125,"name":"JoelLee","avatar":"https://static.tigerbbs.com/e1f6c92b13d94cba61906c07dbbb2ab6","vip":1,"currentWearingBadge":{"badgeId":"44212b71d0be4ec88898348dbe882e03-2","templateUuid":"44212b71d0be4ec88898348dbe882e03","name":"Executive Tiger","description":"The transaction amount of the securities account reaches $300,000","bigImgUrl":"https://static.tigerbbs.com/9d20b23f1b6335407f882bc5c2ad12c0","smallImgUrl":"https://static.tigerbbs.com/ada3b4533518ace8404a3f6dd192bd29","grayImgUrl":"https://static.tigerbbs.com/177f283ba21d1c077054dac07f88f3bd","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.07.08","exceedPercentage":"80.49%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1101},"crmLevel":1,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":884030482,"type":1,"supId":0,"prevId":0,"content":"Hahahaiaiiaiaaopq","text":"Hahahaiaiiaiaaopq","html":"Hahahaiaiiaiaaopq"}],"langContent":"EN"},{"id":885744887,"gmtCreate":1631836934749,"gmtModify":1676530647367,"author":{"id":"3562659809333234","authorId":"3562659809333234","name":"Yojessica","avatar":"https://static.tigerbbs.com/9deab6fad269044204b8dd0a961885c1","vip":1,"crmLevel":5,"crmLevelSwitch":0,"idStr":"3562659809333234","authorIdStr":"3562659809333234"},"htmlText":"AFRM","listText":"AFRM","text":"AFRM","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/885744887","repostId":1168707929,"repostType":4,"repost":{"id":"1168707929","kind":"news","pubTimestamp":1631802521,"share":"https://ttm.financial/m/news/1168707929?lang=&edition=fundamental","pubTime":"2021-09-16 22:28","market":"us","language":"en","title":"Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’","url":"https://stock-news.laohu8.com/highlight/detail?id=1168707929","media":"The Wall Street Journal","summary":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t ge","content":"<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/108a4007d95b3e93e4d3fe6d678d8339\" tg-width=\"1290\" tg-height=\"859\" width=\"100%\" height=\"auto\"><span>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.</span></p>\n<p>Alexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.</p>\n<p>Installment plans are back&nbsp;in style.PayPal Holdings&nbsp;Inc.&nbsp;last week&nbsp;said it was buying Japanese installment payment startup&nbsp;Paidy Inc., following Square Inc.’s&nbsp;$29 billion deal&nbsp;for&nbsp;Afterpay&nbsp;Ltd.Macy’s&nbsp;Inc.&nbsp;and&nbsp;Bed Bath &amp; Beyond&nbsp;Inc.&nbsp;have added the option at checkout over the past year. Even&nbsp;Amazon.com&nbsp;Inc.&nbsp;is doing it.</p>\n<p>One reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.</p>\n<p>Afterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings&nbsp;Inc.&nbsp;last year said purchases made with its payment plans were 85% larger, on average.</p>\n<p>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.</p>\n<p><img src=\"https://static.tigerbbs.com/40620bab35c446816da175fb2334c05e\" tg-width=\"435\" tg-height=\"562\" width=\"100%\" height=\"auto\"></p>\n<p>“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.</p>\n<p>Ms. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.</p>\n<p>“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”</p>\n<p>Buy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.</p>\n<p>Interest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.</p>\n<p><img src=\"https://static.tigerbbs.com/223a1da79b30869fc443b06f41a959eb\" tg-width=\"441\" tg-height=\"556\" width=\"100%\" height=\"auto\"></p>\n<p>Merchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.</p>\n<p>Buy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator&nbsp;Fair Isaac&nbsp;Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.</p>\n<p>Affirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.</p>\n<p>Working with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.</p>\n<p>“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2f0a5ab7e1c7d6de154b68c230f13b49\" tg-width=\"1050\" tg-height=\"700\" width=\"100%\" height=\"auto\"><span>Affirm facilitates new loans among other payment plans.</span></p>\n<p>Amazon&nbsp;and&nbsp;Walmart&nbsp;Inc.&nbsp;are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.</p>\n<p>Amazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase &amp; Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.</p>\n<p>A desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with&nbsp;Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.</p>\n<p>“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.</p>\n<p>Some banks now offer installment options on their credit cards.Citigroup&nbsp;Inc.&nbsp;saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.</p>\n<p>Synchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.</p>\n<p>Wells Fargo &amp; Co. and&nbsp;Bank of America&nbsp;Corp.&nbsp;are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa&nbsp;Inc.&nbsp;said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-16 22:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna ...</p>\n\n<a href=\"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","AMZN":"亚马逊","AFRM":"Affirm Holdings, Inc.","PYPL":"PayPal","M":"梅西百货","WMT":"沃尔玛","V":"Visa"},"source_url":"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1168707929","content_text":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.\nAlexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.\nInstallment plans are back in style.PayPal Holdings Inc. last week said it was buying Japanese installment payment startup Paidy Inc., following Square Inc.’s $29 billion deal for Afterpay Ltd.Macy’s Inc. and Bed Bath & Beyond Inc. have added the option at checkout over the past year. Even Amazon.com Inc. is doing it.\nOne reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.\nAfterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings Inc. last year said purchases made with its payment plans were 85% larger, on average.\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.\n\n“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.\nMs. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.\n“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”\nBuy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.\nInterest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.\n\nMerchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.\nBuy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator Fair Isaac Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.\nAffirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.\nWorking with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.\n“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”\nAffirm facilitates new loans among other payment plans.\nAmazon and Walmart Inc. are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.\nAmazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase & Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.\nA desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.\n“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.\nSome banks now offer installment options on their credit cards.Citigroup Inc. saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.\nSynchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.\nWells Fargo & Co. and Bank of America Corp. are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa Inc. said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5899258,"gmtCreate":1631850676281,"gmtModify":1663234006045,"authorId":3572742903232212,"author":{"id":3572742903232212,"idStr":"3572742903232212","authorId":3572742903232212,"name":"YURICE","avatar":"https://static.tigerbbs.com/fd23f2ea48009ffdc3ce1d0337994050","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":885744887,"type":1,"supId":0,"prevId":0,"content":"Yes","text":"Yes","html":"Yes"}],"langContent":"EN"},{"id":885754733,"gmtCreate":1631836516122,"gmtModify":1676530646994,"author":{"id":"4087111027239570","authorId":"4087111027239570","name":"Greenhulk","avatar":"https://community-static.tradeup.com/news/8f236d059cd65830ef0352d31cc9aaa3","vip":1,"hat":"https://static.tigerbbs.com/a3dee1aa3a3a3c1814833a4d3f8a5669","crmLevel":1,"crmLevelSwitch":0,"idStr":"4087111027239570","authorIdStr":"4087111027239570"},"htmlText":"[笑哭]&nbsp;","listText":"[笑哭]&nbsp;","text":"[笑哭]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/885754733","repostId":1168707929,"repostType":4,"repost":{"id":"1168707929","kind":"news","pubTimestamp":1631802521,"share":"https://ttm.financial/m/news/1168707929?lang=&edition=fundamental","pubTime":"2021-09-16 22:28","market":"us","language":"en","title":"Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’","url":"https://stock-news.laohu8.com/highlight/detail?id=1168707929","media":"The Wall Street Journal","summary":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t ge","content":"<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/108a4007d95b3e93e4d3fe6d678d8339\" tg-width=\"1290\" tg-height=\"859\" width=\"100%\" height=\"auto\"><span>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.</span></p>\n<p>Alexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.</p>\n<p>Installment plans are back&nbsp;in style.PayPal Holdings&nbsp;Inc.&nbsp;last week&nbsp;said it was buying Japanese installment payment startup&nbsp;Paidy Inc., following Square Inc.’s&nbsp;$29 billion deal&nbsp;for&nbsp;Afterpay&nbsp;Ltd.Macy’s&nbsp;Inc.&nbsp;and&nbsp;Bed Bath &amp; Beyond&nbsp;Inc.&nbsp;have added the option at checkout over the past year. Even&nbsp;Amazon.com&nbsp;Inc.&nbsp;is doing it.</p>\n<p>One reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.</p>\n<p>Afterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings&nbsp;Inc.&nbsp;last year said purchases made with its payment plans were 85% larger, on average.</p>\n<p>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.</p>\n<p><img src=\"https://static.tigerbbs.com/40620bab35c446816da175fb2334c05e\" tg-width=\"435\" tg-height=\"562\" width=\"100%\" height=\"auto\"></p>\n<p>“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.</p>\n<p>Ms. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.</p>\n<p>“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”</p>\n<p>Buy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.</p>\n<p>Interest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.</p>\n<p><img src=\"https://static.tigerbbs.com/223a1da79b30869fc443b06f41a959eb\" tg-width=\"441\" tg-height=\"556\" width=\"100%\" height=\"auto\"></p>\n<p>Merchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.</p>\n<p>Buy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator&nbsp;Fair Isaac&nbsp;Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.</p>\n<p>Affirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.</p>\n<p>Working with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.</p>\n<p>“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2f0a5ab7e1c7d6de154b68c230f13b49\" tg-width=\"1050\" tg-height=\"700\" width=\"100%\" height=\"auto\"><span>Affirm facilitates new loans among other payment plans.</span></p>\n<p>Amazon&nbsp;and&nbsp;Walmart&nbsp;Inc.&nbsp;are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.</p>\n<p>Amazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase &amp; Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.</p>\n<p>A desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with&nbsp;Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.</p>\n<p>“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.</p>\n<p>Some banks now offer installment options on their credit cards.Citigroup&nbsp;Inc.&nbsp;saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.</p>\n<p>Synchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.</p>\n<p>Wells Fargo &amp; Co. and&nbsp;Bank of America&nbsp;Corp.&nbsp;are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa&nbsp;Inc.&nbsp;said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-16 22:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna ...</p>\n\n<a href=\"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","AMZN":"亚马逊","AFRM":"Affirm Holdings, Inc.","PYPL":"PayPal","M":"梅西百货","WMT":"沃尔玛","V":"Visa"},"source_url":"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1168707929","content_text":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.\nAlexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.\nInstallment plans are back in style.PayPal Holdings Inc. last week said it was buying Japanese installment payment startup Paidy Inc., following Square Inc.’s $29 billion deal for Afterpay Ltd.Macy’s Inc. and Bed Bath & Beyond Inc. have added the option at checkout over the past year. Even Amazon.com Inc. is doing it.\nOne reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.\nAfterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings Inc. last year said purchases made with its payment plans were 85% larger, on average.\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.\n\n“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.\nMs. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.\n“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”\nBuy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.\nInterest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.\n\nMerchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.\nBuy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator Fair Isaac Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.\nAffirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.\nWorking with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.\n“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”\nAffirm facilitates new loans among other payment plans.\nAmazon and Walmart Inc. are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.\nAmazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase & Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.\nA desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.\n“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.\nSome banks now offer installment options on their credit cards.Citigroup Inc. saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.\nSynchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.\nWells Fargo & Co. and Bank of America Corp. are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa Inc. said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":885759834,"gmtCreate":1631836130128,"gmtModify":1676530646835,"author":{"id":"3565398029874833","authorId":"3565398029874833","name":"JasonChee","avatar":"https://static.tigerbbs.com/2cd679f9501637d6be192dfcc13942b2","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3565398029874833","authorIdStr":"3565398029874833"},"htmlText":"Low charge off ?","listText":"Low charge off ?","text":"Low charge off ?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/885759834","repostId":1168707929,"repostType":4,"repost":{"id":"1168707929","kind":"news","pubTimestamp":1631802521,"share":"https://ttm.financial/m/news/1168707929?lang=&edition=fundamental","pubTime":"2021-09-16 22:28","market":"us","language":"en","title":"Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’","url":"https://stock-news.laohu8.com/highlight/detail?id=1168707929","media":"The Wall Street Journal","summary":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t ge","content":"<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/108a4007d95b3e93e4d3fe6d678d8339\" tg-width=\"1290\" tg-height=\"859\" width=\"100%\" height=\"auto\"><span>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.</span></p>\n<p>Alexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.</p>\n<p>Installment plans are back&nbsp;in style.PayPal Holdings&nbsp;Inc.&nbsp;last week&nbsp;said it was buying Japanese installment payment startup&nbsp;Paidy Inc., following Square Inc.’s&nbsp;$29 billion deal&nbsp;for&nbsp;Afterpay&nbsp;Ltd.Macy’s&nbsp;Inc.&nbsp;and&nbsp;Bed Bath &amp; Beyond&nbsp;Inc.&nbsp;have added the option at checkout over the past year. Even&nbsp;Amazon.com&nbsp;Inc.&nbsp;is doing it.</p>\n<p>One reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.</p>\n<p>Afterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings&nbsp;Inc.&nbsp;last year said purchases made with its payment plans were 85% larger, on average.</p>\n<p>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.</p>\n<p><img src=\"https://static.tigerbbs.com/40620bab35c446816da175fb2334c05e\" tg-width=\"435\" tg-height=\"562\" width=\"100%\" height=\"auto\"></p>\n<p>“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.</p>\n<p>Ms. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.</p>\n<p>“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”</p>\n<p>Buy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.</p>\n<p>Interest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.</p>\n<p><img src=\"https://static.tigerbbs.com/223a1da79b30869fc443b06f41a959eb\" tg-width=\"441\" tg-height=\"556\" width=\"100%\" height=\"auto\"></p>\n<p>Merchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.</p>\n<p>Buy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator&nbsp;Fair Isaac&nbsp;Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.</p>\n<p>Affirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.</p>\n<p>Working with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.</p>\n<p>“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2f0a5ab7e1c7d6de154b68c230f13b49\" tg-width=\"1050\" tg-height=\"700\" width=\"100%\" height=\"auto\"><span>Affirm facilitates new loans among other payment plans.</span></p>\n<p>Amazon&nbsp;and&nbsp;Walmart&nbsp;Inc.&nbsp;are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.</p>\n<p>Amazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase &amp; Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.</p>\n<p>A desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with&nbsp;Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.</p>\n<p>“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.</p>\n<p>Some banks now offer installment options on their credit cards.Citigroup&nbsp;Inc.&nbsp;saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.</p>\n<p>Synchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.</p>\n<p>Wells Fargo &amp; Co. and&nbsp;Bank of America&nbsp;Corp.&nbsp;are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa&nbsp;Inc.&nbsp;said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-16 22:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna ...</p>\n\n<a href=\"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","AMZN":"亚马逊","AFRM":"Affirm Holdings, Inc.","PYPL":"PayPal","M":"梅西百货","WMT":"沃尔玛","V":"Visa"},"source_url":"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1168707929","content_text":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.\nAlexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.\nInstallment plans are back in style.PayPal Holdings Inc. last week said it was buying Japanese installment payment startup Paidy Inc., following Square Inc.’s $29 billion deal for Afterpay Ltd.Macy’s Inc. and Bed Bath & Beyond Inc. have added the option at checkout over the past year. Even Amazon.com Inc. is doing it.\nOne reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.\nAfterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings Inc. last year said purchases made with its payment plans were 85% larger, on average.\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.\n\n“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.\nMs. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.\n“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”\nBuy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.\nInterest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.\n\nMerchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.\nBuy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator Fair Isaac Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.\nAffirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.\nWorking with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.\n“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”\nAffirm facilitates new loans among other payment plans.\nAmazon and Walmart Inc. are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.\nAmazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase & Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.\nA desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.\n“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.\nSome banks now offer installment options on their credit cards.Citigroup Inc. saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.\nSynchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.\nWells Fargo & Co. and Bank of America Corp. are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa Inc. said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":885781905,"gmtCreate":1631834582107,"gmtModify":1676530646142,"author":{"id":"3581974691543530","authorId":"3581974691543530","name":"Cassjo","avatar":"https://static.tigerbbs.com/1e87388c6aea1be3c1691b78e8e7ee22","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3581974691543530","authorIdStr":"3581974691543530"},"htmlText":"Okok","listText":"Okok","text":"Okok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/885781905","repostId":1168707929,"repostType":4,"repost":{"id":"1168707929","kind":"news","pubTimestamp":1631802521,"share":"https://ttm.financial/m/news/1168707929?lang=&edition=fundamental","pubTime":"2021-09-16 22:28","market":"us","language":"en","title":"Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’","url":"https://stock-news.laohu8.com/highlight/detail?id=1168707929","media":"The Wall Street Journal","summary":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t ge","content":"<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/108a4007d95b3e93e4d3fe6d678d8339\" tg-width=\"1290\" tg-height=\"859\" width=\"100%\" height=\"auto\"><span>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.</span></p>\n<p>Alexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.</p>\n<p>Installment plans are back&nbsp;in style.PayPal Holdings&nbsp;Inc.&nbsp;last week&nbsp;said it was buying Japanese installment payment startup&nbsp;Paidy Inc., following Square Inc.’s&nbsp;$29 billion deal&nbsp;for&nbsp;Afterpay&nbsp;Ltd.Macy’s&nbsp;Inc.&nbsp;and&nbsp;Bed Bath &amp; Beyond&nbsp;Inc.&nbsp;have added the option at checkout over the past year. Even&nbsp;Amazon.com&nbsp;Inc.&nbsp;is doing it.</p>\n<p>One reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.</p>\n<p>Afterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings&nbsp;Inc.&nbsp;last year said purchases made with its payment plans were 85% larger, on average.</p>\n<p>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.</p>\n<p><img src=\"https://static.tigerbbs.com/40620bab35c446816da175fb2334c05e\" tg-width=\"435\" tg-height=\"562\" width=\"100%\" height=\"auto\"></p>\n<p>“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.</p>\n<p>Ms. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.</p>\n<p>“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”</p>\n<p>Buy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.</p>\n<p>Interest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.</p>\n<p><img src=\"https://static.tigerbbs.com/223a1da79b30869fc443b06f41a959eb\" tg-width=\"441\" tg-height=\"556\" width=\"100%\" height=\"auto\"></p>\n<p>Merchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.</p>\n<p>Buy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator&nbsp;Fair Isaac&nbsp;Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.</p>\n<p>Affirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.</p>\n<p>Working with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.</p>\n<p>“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2f0a5ab7e1c7d6de154b68c230f13b49\" tg-width=\"1050\" tg-height=\"700\" width=\"100%\" height=\"auto\"><span>Affirm facilitates new loans among other payment plans.</span></p>\n<p>Amazon&nbsp;and&nbsp;Walmart&nbsp;Inc.&nbsp;are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.</p>\n<p>Amazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase &amp; Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.</p>\n<p>A desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with&nbsp;Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.</p>\n<p>“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.</p>\n<p>Some banks now offer installment options on their credit cards.Citigroup&nbsp;Inc.&nbsp;saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.</p>\n<p>Synchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.</p>\n<p>Wells Fargo &amp; Co. and&nbsp;Bank of America&nbsp;Corp.&nbsp;are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa&nbsp;Inc.&nbsp;said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-16 22:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna ...</p>\n\n<a href=\"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","AMZN":"亚马逊","AFRM":"Affirm Holdings, Inc.","PYPL":"PayPal","M":"梅西百货","WMT":"沃尔玛","V":"Visa"},"source_url":"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1168707929","content_text":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.\nAlexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.\nInstallment plans are back in style.PayPal Holdings Inc. last week said it was buying Japanese installment payment startup Paidy Inc., following Square Inc.’s $29 billion deal for Afterpay Ltd.Macy’s Inc. and Bed Bath & Beyond Inc. have added the option at checkout over the past year. Even Amazon.com Inc. is doing it.\nOne reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.\nAfterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings Inc. last year said purchases made with its payment plans were 85% larger, on average.\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.\n\n“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.\nMs. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.\n“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”\nBuy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.\nInterest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.\n\nMerchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.\nBuy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator Fair Isaac Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.\nAffirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.\nWorking with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.\n“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”\nAffirm facilitates new loans among other payment plans.\nAmazon and Walmart Inc. are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.\nAmazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase & Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.\nA desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.\n“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.\nSome banks now offer installment options on their credit cards.Citigroup Inc. saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.\nSynchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.\nWells Fargo & Co. and Bank of America Corp. are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa Inc. said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":885789089,"gmtCreate":1631834464141,"gmtModify":1676530646083,"author":{"id":"3580076354872466","authorId":"3580076354872466","name":"玉树临风英俊","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3580076354872466","authorIdStr":"3580076354872466"},"htmlText":"?&nbsp;","listText":"?&nbsp;","text":"?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/885789089","repostId":1168707929,"repostType":4,"repost":{"id":"1168707929","kind":"news","pubTimestamp":1631802521,"share":"https://ttm.financial/m/news/1168707929?lang=&edition=fundamental","pubTime":"2021-09-16 22:28","market":"us","language":"en","title":"Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’","url":"https://stock-news.laohu8.com/highlight/detail?id=1168707929","media":"The Wall Street Journal","summary":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t ge","content":"<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/108a4007d95b3e93e4d3fe6d678d8339\" tg-width=\"1290\" tg-height=\"859\" width=\"100%\" height=\"auto\"><span>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.</span></p>\n<p>Alexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.</p>\n<p>Installment plans are back&nbsp;in style.PayPal Holdings&nbsp;Inc.&nbsp;last week&nbsp;said it was buying Japanese installment payment startup&nbsp;Paidy Inc., following Square Inc.’s&nbsp;$29 billion deal&nbsp;for&nbsp;Afterpay&nbsp;Ltd.Macy’s&nbsp;Inc.&nbsp;and&nbsp;Bed Bath &amp; Beyond&nbsp;Inc.&nbsp;have added the option at checkout over the past year. Even&nbsp;Amazon.com&nbsp;Inc.&nbsp;is doing it.</p>\n<p>One reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.</p>\n<p>Afterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings&nbsp;Inc.&nbsp;last year said purchases made with its payment plans were 85% larger, on average.</p>\n<p>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.</p>\n<p><img src=\"https://static.tigerbbs.com/40620bab35c446816da175fb2334c05e\" tg-width=\"435\" tg-height=\"562\" width=\"100%\" height=\"auto\"></p>\n<p>“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.</p>\n<p>Ms. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.</p>\n<p>“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”</p>\n<p>Buy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.</p>\n<p>Interest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.</p>\n<p><img src=\"https://static.tigerbbs.com/223a1da79b30869fc443b06f41a959eb\" tg-width=\"441\" tg-height=\"556\" width=\"100%\" height=\"auto\"></p>\n<p>Merchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.</p>\n<p>Buy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator&nbsp;Fair Isaac&nbsp;Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.</p>\n<p>Affirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.</p>\n<p>Working with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.</p>\n<p>“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2f0a5ab7e1c7d6de154b68c230f13b49\" tg-width=\"1050\" tg-height=\"700\" width=\"100%\" height=\"auto\"><span>Affirm facilitates new loans among other payment plans.</span></p>\n<p>Amazon&nbsp;and&nbsp;Walmart&nbsp;Inc.&nbsp;are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.</p>\n<p>Amazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase &amp; Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.</p>\n<p>A desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with&nbsp;Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.</p>\n<p>“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.</p>\n<p>Some banks now offer installment options on their credit cards.Citigroup&nbsp;Inc.&nbsp;saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.</p>\n<p>Synchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.</p>\n<p>Wells Fargo &amp; Co. and&nbsp;Bank of America&nbsp;Corp.&nbsp;are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa&nbsp;Inc.&nbsp;said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-16 22:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna ...</p>\n\n<a href=\"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","AMZN":"亚马逊","AFRM":"Affirm Holdings, Inc.","PYPL":"PayPal","M":"梅西百货","WMT":"沃尔玛","V":"Visa"},"source_url":"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1168707929","content_text":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.\nAlexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.\nInstallment plans are back in style.PayPal Holdings Inc. last week said it was buying Japanese installment payment startup Paidy Inc., following Square Inc.’s $29 billion deal for Afterpay Ltd.Macy’s Inc. and Bed Bath & Beyond Inc. have added the option at checkout over the past year. Even Amazon.com Inc. is doing it.\nOne reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.\nAfterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings Inc. last year said purchases made with its payment plans were 85% larger, on average.\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.\n\n“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.\nMs. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.\n“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”\nBuy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.\nInterest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.\n\nMerchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.\nBuy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator Fair Isaac Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.\nAffirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.\nWorking with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.\n“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”\nAffirm facilitates new loans among other payment plans.\nAmazon and Walmart Inc. are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.\nAmazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase & Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.\nA desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.\n“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.\nSome banks now offer installment options on their credit cards.Citigroup Inc. saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.\nSynchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.\nWells Fargo & Co. and Bank of America Corp. are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa Inc. said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":885715985,"gmtCreate":1631834243347,"gmtModify":1676530645988,"author":{"id":"4088035849823630","authorId":"4088035849823630","name":"丰人","avatar":"https://static.tigerbbs.com/35bfaa2970044533bc9763d63a71e1dd","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"4088035849823630","authorIdStr":"4088035849823630"},"htmlText":"Good.","listText":"Good.","text":"Good.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/885715985","repostId":1168707929,"repostType":4,"repost":{"id":"1168707929","kind":"news","pubTimestamp":1631802521,"share":"https://ttm.financial/m/news/1168707929?lang=&edition=fundamental","pubTime":"2021-09-16 22:28","market":"us","language":"en","title":"Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’","url":"https://stock-news.laohu8.com/highlight/detail?id=1168707929","media":"The Wall Street Journal","summary":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t ge","content":"<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/108a4007d95b3e93e4d3fe6d678d8339\" tg-width=\"1290\" tg-height=\"859\" width=\"100%\" height=\"auto\"><span>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.</span></p>\n<p>Alexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.</p>\n<p>Installment plans are back&nbsp;in style.PayPal Holdings&nbsp;Inc.&nbsp;last week&nbsp;said it was buying Japanese installment payment startup&nbsp;Paidy Inc., following Square Inc.’s&nbsp;$29 billion deal&nbsp;for&nbsp;Afterpay&nbsp;Ltd.Macy’s&nbsp;Inc.&nbsp;and&nbsp;Bed Bath &amp; Beyond&nbsp;Inc.&nbsp;have added the option at checkout over the past year. Even&nbsp;Amazon.com&nbsp;Inc.&nbsp;is doing it.</p>\n<p>One reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.</p>\n<p>Afterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings&nbsp;Inc.&nbsp;last year said purchases made with its payment plans were 85% larger, on average.</p>\n<p>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.</p>\n<p><img src=\"https://static.tigerbbs.com/40620bab35c446816da175fb2334c05e\" tg-width=\"435\" tg-height=\"562\" width=\"100%\" height=\"auto\"></p>\n<p>“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.</p>\n<p>Ms. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.</p>\n<p>“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”</p>\n<p>Buy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.</p>\n<p>Interest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.</p>\n<p><img src=\"https://static.tigerbbs.com/223a1da79b30869fc443b06f41a959eb\" tg-width=\"441\" tg-height=\"556\" width=\"100%\" height=\"auto\"></p>\n<p>Merchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.</p>\n<p>Buy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator&nbsp;Fair Isaac&nbsp;Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.</p>\n<p>Affirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.</p>\n<p>Working with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.</p>\n<p>“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2f0a5ab7e1c7d6de154b68c230f13b49\" tg-width=\"1050\" tg-height=\"700\" width=\"100%\" height=\"auto\"><span>Affirm facilitates new loans among other payment plans.</span></p>\n<p>Amazon&nbsp;and&nbsp;Walmart&nbsp;Inc.&nbsp;are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.</p>\n<p>Amazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase &amp; Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.</p>\n<p>A desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with&nbsp;Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.</p>\n<p>“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.</p>\n<p>Some banks now offer installment options on their credit cards.Citigroup&nbsp;Inc.&nbsp;saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.</p>\n<p>Synchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.</p>\n<p>Wells Fargo &amp; Co. and&nbsp;Bank of America&nbsp;Corp.&nbsp;are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa&nbsp;Inc.&nbsp;said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-16 22:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna ...</p>\n\n<a href=\"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","AMZN":"亚马逊","AFRM":"Affirm Holdings, Inc.","PYPL":"PayPal","M":"梅西百货","WMT":"沃尔玛","V":"Visa"},"source_url":"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1168707929","content_text":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.\nAlexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.\nInstallment plans are back in style.PayPal Holdings Inc. last week said it was buying Japanese installment payment startup Paidy Inc., following Square Inc.’s $29 billion deal for Afterpay Ltd.Macy’s Inc. and Bed Bath & Beyond Inc. have added the option at checkout over the past year. Even Amazon.com Inc. is doing it.\nOne reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.\nAfterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings Inc. last year said purchases made with its payment plans were 85% larger, on average.\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.\n\n“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.\nMs. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.\n“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”\nBuy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.\nInterest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.\n\nMerchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.\nBuy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator Fair Isaac Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.\nAffirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.\nWorking with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.\n“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”\nAffirm facilitates new loans among other payment plans.\nAmazon and Walmart Inc. are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.\nAmazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase & Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.\nA desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.\n“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.\nSome banks now offer installment options on their credit cards.Citigroup Inc. saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.\nSynchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.\nWells Fargo & Co. and Bank of America Corp. are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa Inc. said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5895198,"gmtCreate":1631834366219,"gmtModify":1663233990139,"authorId":3582350348015234,"author":{"id":3582350348015234,"idStr":"3582350348015234","authorId":3582350348015234,"name":"Ag1718","avatar":"https://community-static.tradeup.com/news/7b99db6dd9dd4eaa84bd8baf04aad0b9","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":885715985,"type":1,"supId":0,"prevId":0,"content":"??","text":"??","html":"??"}],"langContent":"EN"},{"id":885710078,"gmtCreate":1631833829094,"gmtModify":1676530645686,"author":{"id":"3574118564601995","authorId":"3574118564601995","name":"RS142","avatar":"https://static.tigerbbs.com/22d2d9b1f352da24e6ea75b557ac987a","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3574118564601995","authorIdStr":"3574118564601995"},"htmlText":"Good goal.","listText":"Good goal.","text":"Good goal.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/885710078","repostId":1168707929,"repostType":4,"repost":{"id":"1168707929","kind":"news","pubTimestamp":1631802521,"share":"https://ttm.financial/m/news/1168707929?lang=&edition=fundamental","pubTime":"2021-09-16 22:28","market":"us","language":"en","title":"Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’","url":"https://stock-news.laohu8.com/highlight/detail?id=1168707929","media":"The Wall Street Journal","summary":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t ge","content":"<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/108a4007d95b3e93e4d3fe6d678d8339\" tg-width=\"1290\" tg-height=\"859\" width=\"100%\" height=\"auto\"><span>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.</span></p>\n<p>Alexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.</p>\n<p>Installment plans are back&nbsp;in style.PayPal Holdings&nbsp;Inc.&nbsp;last week&nbsp;said it was buying Japanese installment payment startup&nbsp;Paidy Inc., following Square Inc.’s&nbsp;$29 billion deal&nbsp;for&nbsp;Afterpay&nbsp;Ltd.Macy’s&nbsp;Inc.&nbsp;and&nbsp;Bed Bath &amp; Beyond&nbsp;Inc.&nbsp;have added the option at checkout over the past year. Even&nbsp;Amazon.com&nbsp;Inc.&nbsp;is doing it.</p>\n<p>One reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.</p>\n<p>Afterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings&nbsp;Inc.&nbsp;last year said purchases made with its payment plans were 85% larger, on average.</p>\n<p>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.</p>\n<p><img src=\"https://static.tigerbbs.com/40620bab35c446816da175fb2334c05e\" tg-width=\"435\" tg-height=\"562\" width=\"100%\" height=\"auto\"></p>\n<p>“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.</p>\n<p>Ms. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.</p>\n<p>“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”</p>\n<p>Buy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.</p>\n<p>Interest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.</p>\n<p><img src=\"https://static.tigerbbs.com/223a1da79b30869fc443b06f41a959eb\" tg-width=\"441\" tg-height=\"556\" width=\"100%\" height=\"auto\"></p>\n<p>Merchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.</p>\n<p>Buy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator&nbsp;Fair Isaac&nbsp;Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.</p>\n<p>Affirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.</p>\n<p>Working with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.</p>\n<p>“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2f0a5ab7e1c7d6de154b68c230f13b49\" tg-width=\"1050\" tg-height=\"700\" width=\"100%\" height=\"auto\"><span>Affirm facilitates new loans among other payment plans.</span></p>\n<p>Amazon&nbsp;and&nbsp;Walmart&nbsp;Inc.&nbsp;are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.</p>\n<p>Amazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase &amp; Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.</p>\n<p>A desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with&nbsp;Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.</p>\n<p>“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.</p>\n<p>Some banks now offer installment options on their credit cards.Citigroup&nbsp;Inc.&nbsp;saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.</p>\n<p>Synchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.</p>\n<p>Wells Fargo &amp; Co. and&nbsp;Bank of America&nbsp;Corp.&nbsp;are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa&nbsp;Inc.&nbsp;said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-16 22:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna ...</p>\n\n<a href=\"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","AMZN":"亚马逊","AFRM":"Affirm Holdings, Inc.","PYPL":"PayPal","M":"梅西百货","WMT":"沃尔玛","V":"Visa"},"source_url":"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1168707929","content_text":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.\nAlexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.\nInstallment plans are back in style.PayPal Holdings Inc. last week said it was buying Japanese installment payment startup Paidy Inc., following Square Inc.’s $29 billion deal for Afterpay Ltd.Macy’s Inc. and Bed Bath & Beyond Inc. have added the option at checkout over the past year. Even Amazon.com Inc. is doing it.\nOne reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.\nAfterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings Inc. last year said purchases made with its payment plans were 85% larger, on average.\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.\n\n“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.\nMs. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.\n“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”\nBuy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.\nInterest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.\n\nMerchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.\nBuy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator Fair Isaac Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.\nAffirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.\nWorking with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.\n“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”\nAffirm facilitates new loans among other payment plans.\nAmazon and Walmart Inc. are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.\nAmazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase & Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.\nA desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.\n“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.\nSome banks now offer installment options on their credit cards.Citigroup Inc. saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.\nSynchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.\nWells Fargo & Co. and Bank of America Corp. are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa Inc. said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5895073,"gmtCreate":1631833937867,"gmtModify":1663233991141,"authorId":3587008457873110,"author":{"id":3587008457873110,"idStr":"3587008457873110","authorId":3587008457873110,"name":"tig2021","avatar":"https://static.tigerbbs.com/86558e2c1be0fae967630b306994ef5a","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-2","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Master Trader","description":"Total number of securities or futures transactions reached 100","bigImgUrl":"https://static.tigerbbs.com/ad22cfbe2d05aa393b18e9226e4b0307","smallImgUrl":"https://static.tigerbbs.com/36702e6ff3ffe46acafee66cc85273ca","grayImgUrl":"https://static.tigerbbs.com/d52eb88fa385cf5abe2616ed63781765","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","exceedPercentage":"80.01%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":2,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":885710078,"type":1,"supId":5895063,"prevId":0,"content":"<u>yes</u>","text":"<u>yes</u>","html":"<u>yes</u>"},{"id":5895063,"gmtCreate":1631833905285,"gmtModify":1631890557895,"authorId":3582668988155006,"author":{"id":3582668988155006,"idStr":"3582668988155006","authorId":3582668988155006,"name":"MengKeng","avatar":"https://static.tigerbbs.com/daf999525f61ba41d3c13b0ed728eb77","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-1","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Elite Trader","description":"Total number of securities or futures transactions reached 30","bigImgUrl":"https://static.tigerbbs.com/ab0f87127c854ce3191a752d57b46edc","smallImgUrl":"https://static.tigerbbs.com/c9835ce48b8c8743566d344ac7a7ba8c","grayImgUrl":"https://static.tigerbbs.com/76754b53ce7a90019f132c1d2fbc698f","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.29","exceedPercentage":"60.78%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":885710078,"type":1,"supId":0,"prevId":0,"content":"this is to \"trap\" clients to continue buying more.&nbsp; if they dun have the discipline and control, they will be broke one <u>day</u>","text":"this is to \"trap\" clients to continue buying more.&nbsp; if they dun have the discipline and control, they will be broke one <u>day</u>","html":"this is to \"trap\" clients to continue buying more.&nbsp; if they dun have the discipline and control, they will be broke one <u>day</u>"}],"langContent":"EN"},{"id":885737044,"gmtCreate":1631833754388,"gmtModify":1676530645666,"author":{"id":"3587095479419511","authorId":"3587095479419511","name":"HelloKitty55","avatar":"https://static.tigerbbs.com/d60ee63e7e29d36d5bc7561ef9bc3ed6","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3587095479419511","authorIdStr":"3587095479419511"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/885737044","repostId":1168707929,"repostType":4,"repost":{"id":"1168707929","kind":"news","pubTimestamp":1631802521,"share":"https://ttm.financial/m/news/1168707929?lang=&edition=fundamental","pubTime":"2021-09-16 22:28","market":"us","language":"en","title":"Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’","url":"https://stock-news.laohu8.com/highlight/detail?id=1168707929","media":"The Wall Street Journal","summary":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t ge","content":"<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/108a4007d95b3e93e4d3fe6d678d8339\" tg-width=\"1290\" tg-height=\"859\" width=\"100%\" height=\"auto\"><span>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.</span></p>\n<p>Alexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.</p>\n<p>Installment plans are back&nbsp;in style.PayPal Holdings&nbsp;Inc.&nbsp;last week&nbsp;said it was buying Japanese installment payment startup&nbsp;Paidy Inc., following Square Inc.’s&nbsp;$29 billion deal&nbsp;for&nbsp;Afterpay&nbsp;Ltd.Macy’s&nbsp;Inc.&nbsp;and&nbsp;Bed Bath &amp; Beyond&nbsp;Inc.&nbsp;have added the option at checkout over the past year. Even&nbsp;Amazon.com&nbsp;Inc.&nbsp;is doing it.</p>\n<p>One reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.</p>\n<p>Afterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings&nbsp;Inc.&nbsp;last year said purchases made with its payment plans were 85% larger, on average.</p>\n<p>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.</p>\n<p><img src=\"https://static.tigerbbs.com/40620bab35c446816da175fb2334c05e\" tg-width=\"435\" tg-height=\"562\" width=\"100%\" height=\"auto\"></p>\n<p>“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.</p>\n<p>Ms. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.</p>\n<p>“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”</p>\n<p>Buy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.</p>\n<p>Interest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.</p>\n<p><img src=\"https://static.tigerbbs.com/223a1da79b30869fc443b06f41a959eb\" tg-width=\"441\" tg-height=\"556\" width=\"100%\" height=\"auto\"></p>\n<p>Merchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.</p>\n<p>Buy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator&nbsp;Fair Isaac&nbsp;Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.</p>\n<p>Affirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.</p>\n<p>Working with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.</p>\n<p>“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2f0a5ab7e1c7d6de154b68c230f13b49\" tg-width=\"1050\" tg-height=\"700\" width=\"100%\" height=\"auto\"><span>Affirm facilitates new loans among other payment plans.</span></p>\n<p>Amazon&nbsp;and&nbsp;Walmart&nbsp;Inc.&nbsp;are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.</p>\n<p>Amazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase &amp; Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.</p>\n<p>A desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with&nbsp;Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.</p>\n<p>“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.</p>\n<p>Some banks now offer installment options on their credit cards.Citigroup&nbsp;Inc.&nbsp;saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.</p>\n<p>Synchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.</p>\n<p>Wells Fargo &amp; Co. and&nbsp;Bank of America&nbsp;Corp.&nbsp;are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa&nbsp;Inc.&nbsp;said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-16 22:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna ...</p>\n\n<a href=\"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","AMZN":"亚马逊","AFRM":"Affirm Holdings, Inc.","PYPL":"PayPal","M":"梅西百货","WMT":"沃尔玛","V":"Visa"},"source_url":"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1168707929","content_text":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.\nAlexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.\nInstallment plans are back in style.PayPal Holdings Inc. last week said it was buying Japanese installment payment startup Paidy Inc., following Square Inc.’s $29 billion deal for Afterpay Ltd.Macy’s Inc. and Bed Bath & Beyond Inc. have added the option at checkout over the past year. Even Amazon.com Inc. is doing it.\nOne reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.\nAfterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings Inc. last year said purchases made with its payment plans were 85% larger, on average.\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.\n\n“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.\nMs. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.\n“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”\nBuy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.\nInterest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.\n\nMerchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.\nBuy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator Fair Isaac Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.\nAffirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.\nWorking with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.\n“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”\nAffirm facilitates new loans among other payment plans.\nAmazon and Walmart Inc. are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.\nAmazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase & Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.\nA desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.\n“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.\nSome banks now offer installment options on their credit cards.Citigroup Inc. saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.\nSynchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.\nWells Fargo & Co. and Bank of America Corp. are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa Inc. said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":885730014,"gmtCreate":1631833009238,"gmtModify":1676530645458,"author":{"id":"3586939439858903","authorId":"3586939439858903","name":"ASMH","avatar":"https://static.tigerbbs.com/c8c22c3127769d9bb7b4e8d291d98433","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3586939439858903","authorIdStr":"3586939439858903"},"htmlText":"Like&nbsp;","listText":"Like&nbsp;","text":"Like","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/885730014","repostId":1168707929,"repostType":4,"repost":{"id":"1168707929","kind":"news","pubTimestamp":1631802521,"share":"https://ttm.financial/m/news/1168707929?lang=&edition=fundamental","pubTime":"2021-09-16 22:28","market":"us","language":"en","title":"Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’","url":"https://stock-news.laohu8.com/highlight/detail?id=1168707929","media":"The Wall Street Journal","summary":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t ge","content":"<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/108a4007d95b3e93e4d3fe6d678d8339\" tg-width=\"1290\" tg-height=\"859\" width=\"100%\" height=\"auto\"><span>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.</span></p>\n<p>Alexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.</p>\n<p>Installment plans are back&nbsp;in style.PayPal Holdings&nbsp;Inc.&nbsp;last week&nbsp;said it was buying Japanese installment payment startup&nbsp;Paidy Inc., following Square Inc.’s&nbsp;$29 billion deal&nbsp;for&nbsp;Afterpay&nbsp;Ltd.Macy’s&nbsp;Inc.&nbsp;and&nbsp;Bed Bath &amp; Beyond&nbsp;Inc.&nbsp;have added the option at checkout over the past year. Even&nbsp;Amazon.com&nbsp;Inc.&nbsp;is doing it.</p>\n<p>One reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.</p>\n<p>Afterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings&nbsp;Inc.&nbsp;last year said purchases made with its payment plans were 85% larger, on average.</p>\n<p>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.</p>\n<p><img src=\"https://static.tigerbbs.com/40620bab35c446816da175fb2334c05e\" tg-width=\"435\" tg-height=\"562\" width=\"100%\" height=\"auto\"></p>\n<p>“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.</p>\n<p>Ms. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.</p>\n<p>“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”</p>\n<p>Buy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.</p>\n<p>Interest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.</p>\n<p><img src=\"https://static.tigerbbs.com/223a1da79b30869fc443b06f41a959eb\" tg-width=\"441\" tg-height=\"556\" width=\"100%\" height=\"auto\"></p>\n<p>Merchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.</p>\n<p>Buy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator&nbsp;Fair Isaac&nbsp;Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.</p>\n<p>Affirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.</p>\n<p>Working with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.</p>\n<p>“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2f0a5ab7e1c7d6de154b68c230f13b49\" tg-width=\"1050\" tg-height=\"700\" width=\"100%\" height=\"auto\"><span>Affirm facilitates new loans among other payment plans.</span></p>\n<p>Amazon&nbsp;and&nbsp;Walmart&nbsp;Inc.&nbsp;are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.</p>\n<p>Amazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase &amp; Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.</p>\n<p>A desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with&nbsp;Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.</p>\n<p>“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.</p>\n<p>Some banks now offer installment options on their credit cards.Citigroup&nbsp;Inc.&nbsp;saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.</p>\n<p>Synchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.</p>\n<p>Wells Fargo &amp; Co. and&nbsp;Bank of America&nbsp;Corp.&nbsp;are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa&nbsp;Inc.&nbsp;said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-16 22:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna ...</p>\n\n<a href=\"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","AMZN":"亚马逊","AFRM":"Affirm Holdings, Inc.","PYPL":"PayPal","M":"梅西百货","WMT":"沃尔玛","V":"Visa"},"source_url":"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1168707929","content_text":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.\nAlexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.\nInstallment plans are back in style.PayPal Holdings Inc. last week said it was buying Japanese installment payment startup Paidy Inc., following Square Inc.’s $29 billion deal for Afterpay Ltd.Macy’s Inc. and Bed Bath & Beyond Inc. have added the option at checkout over the past year. Even Amazon.com Inc. is doing it.\nOne reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.\nAfterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings Inc. last year said purchases made with its payment plans were 85% larger, on average.\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.\n\n“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.\nMs. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.\n“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”\nBuy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.\nInterest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.\n\nMerchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.\nBuy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator Fair Isaac Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.\nAffirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.\nWorking with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.\n“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”\nAffirm facilitates new loans among other payment plans.\nAmazon and Walmart Inc. are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.\nAmazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase & Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.\nA desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.\n“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.\nSome banks now offer installment options on their credit cards.Citigroup Inc. saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.\nSynchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.\nWells Fargo & Co. and Bank of America Corp. are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa Inc. said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":885799831,"gmtCreate":1631832414423,"gmtModify":1676530645274,"author":{"id":"3556013255401124","authorId":"3556013255401124","name":"chongcs","avatar":"https://static.tigerbbs.com/d69df85e9ad5160441110d5c4ad85df8","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"3556013255401124","authorIdStr":"3556013255401124"},"htmlText":"ok","listText":"ok","text":"ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/885799831","repostId":1168707929,"repostType":4,"repost":{"id":"1168707929","kind":"news","pubTimestamp":1631802521,"share":"https://ttm.financial/m/news/1168707929?lang=&edition=fundamental","pubTime":"2021-09-16 22:28","market":"us","language":"en","title":"Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’","url":"https://stock-news.laohu8.com/highlight/detail?id=1168707929","media":"The Wall Street Journal","summary":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t ge","content":"<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/108a4007d95b3e93e4d3fe6d678d8339\" tg-width=\"1290\" tg-height=\"859\" width=\"100%\" height=\"auto\"><span>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.</span></p>\n<p>Alexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.</p>\n<p>Installment plans are back&nbsp;in style.PayPal Holdings&nbsp;Inc.&nbsp;last week&nbsp;said it was buying Japanese installment payment startup&nbsp;Paidy Inc., following Square Inc.’s&nbsp;$29 billion deal&nbsp;for&nbsp;Afterpay&nbsp;Ltd.Macy’s&nbsp;Inc.&nbsp;and&nbsp;Bed Bath &amp; Beyond&nbsp;Inc.&nbsp;have added the option at checkout over the past year. Even&nbsp;Amazon.com&nbsp;Inc.&nbsp;is doing it.</p>\n<p>One reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.</p>\n<p>Afterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings&nbsp;Inc.&nbsp;last year said purchases made with its payment plans were 85% larger, on average.</p>\n<p>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.</p>\n<p><img src=\"https://static.tigerbbs.com/40620bab35c446816da175fb2334c05e\" tg-width=\"435\" tg-height=\"562\" width=\"100%\" height=\"auto\"></p>\n<p>“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.</p>\n<p>Ms. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.</p>\n<p>“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”</p>\n<p>Buy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.</p>\n<p>Interest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.</p>\n<p><img src=\"https://static.tigerbbs.com/223a1da79b30869fc443b06f41a959eb\" tg-width=\"441\" tg-height=\"556\" width=\"100%\" height=\"auto\"></p>\n<p>Merchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.</p>\n<p>Buy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator&nbsp;Fair Isaac&nbsp;Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.</p>\n<p>Affirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.</p>\n<p>Working with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.</p>\n<p>“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2f0a5ab7e1c7d6de154b68c230f13b49\" tg-width=\"1050\" tg-height=\"700\" width=\"100%\" height=\"auto\"><span>Affirm facilitates new loans among other payment plans.</span></p>\n<p>Amazon&nbsp;and&nbsp;Walmart&nbsp;Inc.&nbsp;are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.</p>\n<p>Amazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase &amp; Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.</p>\n<p>A desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with&nbsp;Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.</p>\n<p>“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.</p>\n<p>Some banks now offer installment options on their credit cards.Citigroup&nbsp;Inc.&nbsp;saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.</p>\n<p>Synchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.</p>\n<p>Wells Fargo &amp; Co. and&nbsp;Bank of America&nbsp;Corp.&nbsp;are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa&nbsp;Inc.&nbsp;said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-16 22:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna ...</p>\n\n<a href=\"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","AMZN":"亚马逊","AFRM":"Affirm Holdings, Inc.","PYPL":"PayPal","M":"梅西百货","WMT":"沃尔玛","V":"Visa"},"source_url":"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1168707929","content_text":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.\nAlexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.\nInstallment plans are back in style.PayPal Holdings Inc. last week said it was buying Japanese installment payment startup Paidy Inc., following Square Inc.’s $29 billion deal for Afterpay Ltd.Macy’s Inc. and Bed Bath & Beyond Inc. have added the option at checkout over the past year. Even Amazon.com Inc. is doing it.\nOne reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.\nAfterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings Inc. last year said purchases made with its payment plans were 85% larger, on average.\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.\n\n“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.\nMs. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.\n“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”\nBuy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.\nInterest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.\n\nMerchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.\nBuy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator Fair Isaac Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.\nAffirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.\nWorking with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.\n“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”\nAffirm facilitates new loans among other payment plans.\nAmazon and Walmart Inc. are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.\nAmazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase & Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.\nA desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.\n“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.\nSome banks now offer installment options on their credit cards.Citigroup Inc. saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.\nSynchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.\nWells Fargo & Co. and Bank of America Corp. are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa Inc. said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":885709764,"gmtCreate":1631831529458,"gmtModify":1676530644960,"author":{"id":"3581550492242446","authorId":"3581550492242446","name":"vSup_puSv","avatar":"https://static.tigerbbs.com/a1150421a148787160d999c5a94bed8e","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3581550492242446","authorIdStr":"3581550492242446"},"htmlText":"Comment and like pls&nbsp;","listText":"Comment and like pls&nbsp;","text":"Comment and like pls","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":6,"repostSize":0,"link":"https://ttm.financial/post/885709764","repostId":1168707929,"repostType":4,"repost":{"id":"1168707929","kind":"news","pubTimestamp":1631802521,"share":"https://ttm.financial/m/news/1168707929?lang=&edition=fundamental","pubTime":"2021-09-16 22:28","market":"us","language":"en","title":"Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’","url":"https://stock-news.laohu8.com/highlight/detail?id=1168707929","media":"The Wall Street Journal","summary":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t ge","content":"<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/108a4007d95b3e93e4d3fe6d678d8339\" tg-width=\"1290\" tg-height=\"859\" width=\"100%\" height=\"auto\"><span>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.</span></p>\n<p>Alexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.</p>\n<p>Installment plans are back&nbsp;in style.PayPal Holdings&nbsp;Inc.&nbsp;last week&nbsp;said it was buying Japanese installment payment startup&nbsp;Paidy Inc., following Square Inc.’s&nbsp;$29 billion deal&nbsp;for&nbsp;Afterpay&nbsp;Ltd.Macy’s&nbsp;Inc.&nbsp;and&nbsp;Bed Bath &amp; Beyond&nbsp;Inc.&nbsp;have added the option at checkout over the past year. Even&nbsp;Amazon.com&nbsp;Inc.&nbsp;is doing it.</p>\n<p>One reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.</p>\n<p>Afterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings&nbsp;Inc.&nbsp;last year said purchases made with its payment plans were 85% larger, on average.</p>\n<p>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.</p>\n<p><img src=\"https://static.tigerbbs.com/40620bab35c446816da175fb2334c05e\" tg-width=\"435\" tg-height=\"562\" width=\"100%\" height=\"auto\"></p>\n<p>“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.</p>\n<p>Ms. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.</p>\n<p>“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”</p>\n<p>Buy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.</p>\n<p>Interest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.</p>\n<p><img src=\"https://static.tigerbbs.com/223a1da79b30869fc443b06f41a959eb\" tg-width=\"441\" tg-height=\"556\" width=\"100%\" height=\"auto\"></p>\n<p>Merchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.</p>\n<p>Buy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator&nbsp;Fair Isaac&nbsp;Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.</p>\n<p>Affirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.</p>\n<p>Working with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.</p>\n<p>“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2f0a5ab7e1c7d6de154b68c230f13b49\" tg-width=\"1050\" tg-height=\"700\" width=\"100%\" height=\"auto\"><span>Affirm facilitates new loans among other payment plans.</span></p>\n<p>Amazon&nbsp;and&nbsp;Walmart&nbsp;Inc.&nbsp;are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.</p>\n<p>Amazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase &amp; Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.</p>\n<p>A desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with&nbsp;Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.</p>\n<p>“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.</p>\n<p>Some banks now offer installment options on their credit cards.Citigroup&nbsp;Inc.&nbsp;saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.</p>\n<p>Synchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.</p>\n<p>Wells Fargo &amp; Co. and&nbsp;Bank of America&nbsp;Corp.&nbsp;are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa&nbsp;Inc.&nbsp;said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-16 22:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna ...</p>\n\n<a href=\"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","AMZN":"亚马逊","AFRM":"Affirm Holdings, Inc.","PYPL":"PayPal","M":"梅西百货","WMT":"沃尔玛","V":"Visa"},"source_url":"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1168707929","content_text":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.\nAlexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.\nInstallment plans are back in style.PayPal Holdings Inc. last week said it was buying Japanese installment payment startup Paidy Inc., following Square Inc.’s $29 billion deal for Afterpay Ltd.Macy’s Inc. and Bed Bath & Beyond Inc. have added the option at checkout over the past year. Even Amazon.com Inc. is doing it.\nOne reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.\nAfterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings Inc. last year said purchases made with its payment plans were 85% larger, on average.\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.\n\n“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.\nMs. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.\n“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”\nBuy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.\nInterest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.\n\nMerchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.\nBuy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator Fair Isaac Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.\nAffirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.\nWorking with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.\n“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”\nAffirm facilitates new loans among other payment plans.\nAmazon and Walmart Inc. are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.\nAmazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase & Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.\nA desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.\n“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.\nSome banks now offer installment options on their credit cards.Citigroup Inc. saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.\nSynchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.\nWells Fargo & Co. and Bank of America Corp. are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa Inc. said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5912890,"gmtCreate":1631951355844,"gmtModify":1663234068935,"authorId":3569289975833539,"author":{"id":3569289975833539,"idStr":"3569289975833539","authorId":3569289975833539,"name":"julianttw","avatar":"https://static.tigerbbs.com/7f854886b4aff30c9c4529effeb79b64","vip":1,"crmLevel":4,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":885709764,"type":1,"supId":0,"prevId":0,"content":"What's <u>up</u>","text":"What's <u>up</u>","html":"What's <u>up</u>"},{"id":5895468,"gmtCreate":1631835360968,"gmtModify":1663233994843,"authorId":3581550492242446,"author":{"id":3581550492242446,"idStr":"3581550492242446","authorId":3581550492242446,"name":"vSup_puSv","avatar":"https://static.tigerbbs.com/a1150421a148787160d999c5a94bed8e","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":885709764,"type":1,"supId":5894875,"prevId":0,"content":"Ty","text":"Ty","html":"Ty"},{"id":5894847,"gmtCreate":1631832769968,"gmtModify":1663233991737,"authorId":3578630064980119,"author":{"id":3578630064980119,"idStr":"3578630064980119","authorId":3578630064980119,"name":"BGTAN","avatar":"https://static.tigerbbs.com/8ca7305b1f6bd1d4dd9abf3c54e6fbdb","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-2","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Master Trader","description":"Total number of securities or futures transactions reached 100","bigImgUrl":"https://static.tigerbbs.com/ad22cfbe2d05aa393b18e9226e4b0307","smallImgUrl":"https://static.tigerbbs.com/36702e6ff3ffe46acafee66cc85273ca","grayImgUrl":"https://static.tigerbbs.com/d52eb88fa385cf5abe2616ed63781765","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.05.10","exceedPercentage":"80.52%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":3,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":885709764,"type":1,"supId":0,"prevId":0,"content":"<u>ok</u>","text":"<u>ok</u>","html":"<u>ok</u>"},{"id":5895470,"gmtCreate":1631835366798,"gmtModify":1631886278321,"authorId":3581550492242446,"author":{"id":3581550492242446,"idStr":"3581550492242446","authorId":3581550492242446,"name":"vSup_puSv","avatar":"https://static.tigerbbs.com/a1150421a148787160d999c5a94bed8e","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":885709764,"type":1,"supId":5894847,"prevId":0,"content":"Ty","text":"Ty","html":"Ty"},{"id":5895228,"gmtCreate":1631834505508,"gmtModify":1631886278302,"authorId":3580076354872466,"author":{"id":3580076354872466,"idStr":"3580076354872466","authorId":3580076354872466,"name":"玉树临风英俊","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":885709764,"type":1,"supId":5894875,"prevId":0,"content":"Done","text":"Done","html":"Done"}],"langContent":"EN"},{"id":885479108,"gmtCreate":1631830341004,"gmtModify":1676530644713,"author":{"id":"3583025625698124","authorId":"3583025625698124","name":"Cyberboyz","avatar":"https://static.tigerbbs.com/bda6a2e3c6fe5eaf97f2228f49f8e497","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3583025625698124","authorIdStr":"3583025625698124"},"htmlText":"Credits on credits?","listText":"Credits on credits?","text":"Credits on credits?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/885479108","repostId":1168707929,"repostType":4,"repost":{"id":"1168707929","kind":"news","pubTimestamp":1631802521,"share":"https://ttm.financial/m/news/1168707929?lang=&edition=fundamental","pubTime":"2021-09-16 22:28","market":"us","language":"en","title":"Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’","url":"https://stock-news.laohu8.com/highlight/detail?id=1168707929","media":"The Wall Street Journal","summary":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t ge","content":"<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/108a4007d95b3e93e4d3fe6d678d8339\" tg-width=\"1290\" tg-height=\"859\" width=\"100%\" height=\"auto\"><span>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.</span></p>\n<p>Alexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.</p>\n<p>Installment plans are back&nbsp;in style.PayPal Holdings&nbsp;Inc.&nbsp;last week&nbsp;said it was buying Japanese installment payment startup&nbsp;Paidy Inc., following Square Inc.’s&nbsp;$29 billion deal&nbsp;for&nbsp;Afterpay&nbsp;Ltd.Macy’s&nbsp;Inc.&nbsp;and&nbsp;Bed Bath &amp; Beyond&nbsp;Inc.&nbsp;have added the option at checkout over the past year. Even&nbsp;Amazon.com&nbsp;Inc.&nbsp;is doing it.</p>\n<p>One reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.</p>\n<p>Afterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings&nbsp;Inc.&nbsp;last year said purchases made with its payment plans were 85% larger, on average.</p>\n<p>Shoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.</p>\n<p><img src=\"https://static.tigerbbs.com/40620bab35c446816da175fb2334c05e\" tg-width=\"435\" tg-height=\"562\" width=\"100%\" height=\"auto\"></p>\n<p>“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.</p>\n<p>Ms. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.</p>\n<p>“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”</p>\n<p>Buy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.</p>\n<p>Interest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.</p>\n<p><img src=\"https://static.tigerbbs.com/223a1da79b30869fc443b06f41a959eb\" tg-width=\"441\" tg-height=\"556\" width=\"100%\" height=\"auto\"></p>\n<p>Merchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.</p>\n<p>Buy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator&nbsp;Fair Isaac&nbsp;Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.</p>\n<p>Affirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.</p>\n<p>Working with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.</p>\n<p>“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2f0a5ab7e1c7d6de154b68c230f13b49\" tg-width=\"1050\" tg-height=\"700\" width=\"100%\" height=\"auto\"><span>Affirm facilitates new loans among other payment plans.</span></p>\n<p>Amazon&nbsp;and&nbsp;Walmart&nbsp;Inc.&nbsp;are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.</p>\n<p>Amazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase &amp; Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.</p>\n<p>A desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with&nbsp;Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.</p>\n<p>“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.</p>\n<p>Some banks now offer installment options on their credit cards.Citigroup&nbsp;Inc.&nbsp;saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.</p>\n<p>Synchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.</p>\n<p>Wells Fargo &amp; Co. and&nbsp;Bank of America&nbsp;Corp.&nbsp;are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa&nbsp;Inc.&nbsp;said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon Is Doing It. So Is Walmart. Why Retail Loves ‘Buy Now, Pay Later.’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-16 22:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna ...</p>\n\n<a href=\"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","AMZN":"亚马逊","AFRM":"Affirm Holdings, Inc.","PYPL":"PayPal","M":"梅西百货","WMT":"沃尔玛","V":"Visa"},"source_url":"https://www.wsj.com/articles/amazon-is-doing-it-so-is-walmart-why-retail-loves-buy-now-pay-later-11631784601?mod=hp_lead_pos10","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1168707929","content_text":"Retailers big and small are using installment plans to wring more sales out of shoppers who can’t get credit cards\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank, Macy’s CEO Jeff Gennette said on a recent earnings call.\nAlexis Luedtke got her first “buy now, pay later” plan in 2019 after she was rejected for a credit card. She has used at least five more since to buy face cream, T-shirts and birthday gifts.\nInstallment plans are back in style.PayPal Holdings Inc. last week said it was buying Japanese installment payment startup Paidy Inc., following Square Inc.’s $29 billion deal for Afterpay Ltd.Macy’s Inc. and Bed Bath & Beyond Inc. have added the option at checkout over the past year. Even Amazon.com Inc. is doing it.\nOne reason: shoppers like Ms. Luedtke who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.\nAfterpay said it expects the company’s U.S. merchants will see an $8.2 billion increase in sales this year because of payment plans.Affirm Holdings Inc. last year said purchases made with its payment plans were 85% larger, on average.\nShoppers spend more at Macy’s when they use installment plans offered through Klarna Bank AB, Macy’s CEO Jeff Gennette said on a recent earnings call. Klarna also is helping the retailer attract younger customers, he said.\n\n“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.\nMs. Luedtke, 26, has credit cards now but still prefers installment plans. Just last month, she used them to buy about $40 of Peter Thomas Roth skin-care products and $65 in clothing from Shein.\n“It definitely influences how much more I buy or would spend,” she said. “It’s easier to pay $200 over so many weeks compared to $200 right now.”\nBuy now, pay later is a new twist on an old idea. Big retailers have for decades offered installment plans for big-ticket items like washing machines. Today, these plans come in a variety of flavors. Afterpay offers payment plans that shoppers usually attach to their debit cards. Others, like Affirm, also facilitate new loans.\nInterest rates and other terms vary by payment-plan provider. Affirm interest rates range from 0% to 30%, with some 43% of its transactions during its last fiscal year not charging interest at all. The company doesn’t charge late fees. Afterpay doesn’t charge interest but does collect late fees.\n\nMerchants take no credit risk with these plans, but the fees they incur can be higher than on credit-card purchases—often between 3% and 5% of the purchase price, according to people familiar with the matter.\nBuy-now-pay-later companies say they can approve more customers than banks, including people who have thin or no borrowing history. Some 53 million adults in the U.S. lack traditional credit scores, according to FICO score creator Fair Isaac Corp.Installment plans are safer, they say, because they are often smaller than credit-card spending limits and approved on a per-transaction basis.\nAffirm said that it had a net charge-off rate of 1% in the quarter ended June 30, down from 2% a year earlier. Afterpay said it wrote off 0.6% of the total dollars it processed in payments during the company’s fiscal year ended June 30, up from 0.4% the year prior.\nWorking with a web of retailers, buy-now-pay-later companies can create self-contained payment ecosystems. They factor payment behavior into future underwriting decisions. Customers who pay late or not at all risk losing the installment option at other participating retailers.\n“Most merchants want a partner who has real advantage and real ability to underwrite,” said Affirm CEO Max Levchin. “These are not deeper approvals, but they are different approvals.”\nAffirm facilitates new loans among other payment plans.\nAmazon and Walmart Inc. are both working with Affirm. Both have said they want their financial partners to extend credit to more of their customers.\nAmazon is reviewing proposals, as it weighs whether to replace its longtime card issuer, JPMorgan Chase & Co. Amazon is looking for “commitments to underwrite competitively to widen the acquisition funnel,” the retailer said in a request for proposals reviewed by The Wall Street Journal.\nA desire to boost loan approvals was among the reasons Walmart in 2018 decided to end its decadeslong credit-card partnership with Synchrony Financial.(Capital One Financial Corp. now issues Walmart-branded credit cards.) The retailer made Affirm loans available to most of its customers the following year.\n“Our goal is financial inclusion for all,” said Julia Unger, Walmart’s vice president of financial services.\nSome banks now offer installment options on their credit cards.Citigroup Inc. saw a sevenfold increase in the dollar amount of credit-card purchases converted to installment loans in July, compared with the same month a year prior, said Gonzalo Luchetti, head of Citigroup’s U.S. consumer bank.\nSynchrony, the largest U.S. store-credit-card issuer, will launch a buy-now, pay-later plan in October. Capital One will test out its own offering later this year, CEO Richard Fairbank said at a conference Monday.\nWells Fargo & Co. and Bank of America Corp. are exploring adding installment plans on their credit cards, according to people familiar with the matter.Visa Inc. said it has been testing out ways for shoppers to check if they qualify for installment plans when they enter their card numbers at checkout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":300,"commentSize":49,"repostSize":0,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false}}