By FintechOS · June 16, 2022
5 minute read

Forrester report mentions FintechOS BNPL solution

Forrester report mentions FintechOS BNPL solution

Forrester’s recent report mentioned the FintechOS BNPL solution for retailers and lenders entering this thriving new market. We discuss the report and consider why even Apple is offering BNPL services.

We were interviewed for an April 2022 report from leading global market research company, Forrester, “the buy now, pay later (BNPL) opportunity: what banks need to know, and how they can tap into this growing market“. Forrester listed FintechOS as a financial technology provider for banks and lenders looking to enter the space.

Technology is vital for success in this market. Tech giants like Google and Apple are entering the space long before established lenders have been able to complete the digital transformations they need to be able to embed lending options into ecommerce journeys.

Driven by HPFI, the FintechOS Lighthouse platform allows retailers and financial institutions to offer ecommerce embedded lending using their existing software ecosystem without the need for a full digital transformation.

Yet, before we look at what Lighthouse can offer lenders, let’s summarize Forrester’s report on why BNPL is such a vital space for lenders.

Forrester: the BNPL opportunity

To help banks and lenders build their own BNPL offerings, financial technology vendors such as Amount, FintechOS, and Temenos have all recently launched BNPL solutions. And network payment processors Mastercard and Visa have also launched solutions to enable banks and lenders to offer installment payment options to consumers.

Forrester, The Buy Now, Pay Later (BNPL) Opportunity: What Banks Need To Know, and How They Can Tap Into This Growing Market

Forrester identifies the BNPL market as “hotter than ever” in its report. 10% of their survey respondents have used one of four BNPL solutions to make a purchase in the past three months. Meanwhile, the number of merchants that offer at least one BNPL option have doubled from 26% in 2020 to 52% in 2021.

To keep up with consumer demand, 71% of global business and technology professionals in retail confirm their company is making initial investments in, maintaining, or increasing investment in BNPL options in 2022, according to the report.

Our own research report, the BNPL Wayfinder, discovered that 50% of consumers in Western Europe are likely to use BNPL in future. We also learned that 58% of higher-income shoppers are open to embedded finance, confirming Forrester’s findings.

Forrester even notes that rumors of increased regulation in the sector in both the US and UK won’t stymie this growth. As such, it’s no wonder even Apple has entered this space.

Apple and Google entering the BNPL market

This week (June 6), Apple confirmed 2021 rumors that it will be launching “Apple Pay Later” a service that’s available to users of the tech giant’s Apple Pay service. This follows Apple’s acquisition of UK startup Credit Kudos, which was finalized in March.

Apple’s move comes as a response to its rival Google partnering with Afterpay to offer BNPL services through its Google Pay credit card. Apple is upping the game by directly acquiring a credit company to offer its own embedded lending option.

Apple’s existing customer base and technical sophistication put it in a better position to offer BNPL services than most established lenders. However, even the tech firm needed the right software and facilities to enter the space.

Established financial services firms are facing a greater challenge competing with Apple and Google as they’re held back by legacy financial technology, some of which dates back to the 1960s. To compete, they need a way to access the kind of technology that Apple is using without having to go through the expense and complication of a full digital transformation. This is particularly the case, given that 70% of digital transformations fail with no return on investment, according to Deloitte.

The HPFI FintechOS BNPL solution

Forrester mentions FintechOS in its BNPL report as part of a short list of technology providers in the space. We empower financial institutions and other organizations to build their own embedded retail lending and digital BNPL services during checkout as part of their ecommerce offerings.

We were delighted to be mentioned in this report as we believe it highlights the importance of our high-productivity fintech infrastructure (HPFI) in empowering lenders and retailers to enter the BNPL space.

Our Lighthouse technology allows institutions to decentralize their tech stack, connecting legacy systems to the latest fintech options without relying on a fixed and outdated core.

Powered by HPFI, Lighthouse will seamlessly connect with your existing tech systems and link them to the technology you need to create and embed BNPL services into third-party ecommerce journeys. Our platform even comes with Connectors, ready-made links to popular third-party services such as Salesforce.

Not to mention, Lighthouse now includes a BNPL Accelerator – a pre-built customer journey that you can customize and roll out immediately once you’ve deployed Lighthouse. All this can be configured using a low-code/no-code interface, empowering the digital makers in your organization to innovate in the space without waiting for technical support or complex deployment processes.

This capability allows our customers to launch BNPL products in days, rather than months or years, and this is precisely what makes Lighthouse different from other fintech platforms.

To find out more about the FintechOS platform, see our solution page for BNPL and embedded lending.

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