European electronics payment market report 2022 - the emergence Of buy now pay later

• Autor(a) principal: Späder, Manuel
• Data de Publicação: 2022
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/155637
• topic: Fintech; Europe; Payments; Electronic payments; Regulation; Psd2; Open banking; Bnpl; Credit; Lending; Klarna; Interest rate; Consumer behaviour; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

We consider the European payment market using proprietary data on FinTech startups. Applying the perspectives of various interview partners, we examine the effects of PSD2 and Open Banking on the payment industry and the emergence of new payment verticals, and evaluate “Buy now, pay later” as one sub-category and the implication of an economic downturn. We find that the adoption of PSD2 and Open Banking in Europe and the UK led to more competition from third-party providers and financial inclusion. However, the European market is still fragmented in terms of different APIs, which will need to be further regulated by a new scheme from the European Commission in the next two years. Our findings regarding the BNPL industry suggest that the development of this market segment is highly dependent on external market conditions such as rising interest rates and the payment behaviour of consumers as BNPL FinTechs struggle to supply competitive financing at scale.