As worldwide adoption and usage of BNPL grows as the alternative payment method of choice for today’s young consumers, Codebase Technologies has responded by developing an innovative BNPL solution to help banks tackle the threat of rising BNPL brands. Leveraging Codebase Technologies’ award-winning digital banking platform, DigibancTM, the new BNPL component allows for banks, fintechs, lenders, retailers, and anyone in between to create and launch their own branded BNPL offering. Codebase Technologies has introduced the solution to the market after months of design, development, and robust testing.
As people continue to deal with the adverse effects of the COVID-19 pandemic on jobs and the economy, BNPL has emerged as a payment method of choice for millennials and Gen Z’s looking to adapt their spending habits to their new lifestyles. According to a study by Ascent, the most common reason to use buy now, pay later services is to make purchases that don’t fit in one’s budget – 45% of respondents have used it for this reason. Furthermore, 36% of buy now, pay later customers use BNPL once a month or more. Global adoption of BNPL is estimated to continue growing as 30.09% of global customers reported that they are very unlikely to use BNPL in the next six months.
Until now, companies looking to implement BNPL into their customer offering faced two choices: build it from scratch or partner with an existing BNPL brand. Building a BNPL solution is extremely costly and can take an extended period of time to test and deploy while partnering with a BNPL provider can take control away from a company and be quite expensive in the long run. Codebase Technologies DigibancTM BNPL component is ready-made and can be fully customized to allow anyone to launch a BNPL offering in just a few months. Taking a component-based approach to building your BNPL offering can be up to 50% faster than building from scratch and can be on average 40% cheaper, in the long run, than partnering with an existing BNPL provider. Using Codebase Technologies DigibancTM BNPL component also allows for 100% customizability and ownership of the final product.
DigibancTM BNPL’s fully customizable features include an integrated customer onboarding process, detailed data on customer financials and insights, automated decisioning across the customer lifecycle, customizable customer journeys, and more. In addition, the solution is core banking agnostic allowing it to be integrated with any legacy banking systems available in the market.
Raheel Iqbal, Managing Partner at Codebase Technologies, stated, “BNPL is an exciting space, and we’ve had multiple discussions in the past few months with financial institutions who have outlined the challenges they’re facing in adapting to this new trend. BNPL providers are popping up worldwide and attracting huge numbers of customers, and banks especially are feeling the pressure. So, of course, they want to capitalize on this trend to compete and give customers better and easier ways to make purchases. Our BNPL solution gives them a way to address that and launch their own BNPL offering quickly and cost-effectively. Introducing such a solution can help increase repeat business, lower customer credit risks, increase average order value, and improve customer experiences; the benefits are extensive.”
Omar Mansur, Global Enterprise Lead at Codebase Technologies, added, “We’ve seen a gap in the BNPL market for some time, especially when it comes to banks and lenders. The BNPL space has been growing and changing quickly, and large institutions haven’t historically been the quickest to adapt to new trends. Our white label BNPL solution gives them a fantastic tool to adapt to customers’ new preferences. The best part is that our solution is ready to deploy, we simply need to integrate and customize it for an organization, so the time to market is really quick.”
The launch of DigibancTM BNPL is supported by the release of Codebase Technologies whitepaper titled “Everything you wanted to know about BNPL”. The document covers key research and insights on BNPL across the world including benefits of BNPL, customer considerations, delivery models, global BNPL overview, and more.