Banks miss out on the expansion of embedded finance

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On January 26, Santander introduced the launch of Zinia, a brand new ‘purchase now, pay later’ (BNPL) platform providing interest-free instalment loans to shoppers shopping for each on-line and at bodily factors of sale.

The expertise behind Zinia has been working in Germany for the previous yr, and Santander says it has already acquired greater than two million clients there, making it one of many main financial institution gamers in BNPL in Europe by buyer volumes.

It’s a signal that a number of banks at the moment are preventing again to recapture floor conceded to specialist suppliers of embedded finance, a progress space in wholesale and retail lending.

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Ezequiel Szafir, Santander

Ezequiel Szafir, Santander

Ezequiel Szafir, chief government of Openbank and Santander shopper finance, says: “We’re delighted with Zinia’s early enlargement and goal to turn out to be a frontrunner within the purchase now, pay later market.”

There’s little surprise why. BNPL has loved monumental success as on-line retail exercise has grown. In June, Klarna, the main European supplier of such unsecured instalment loans to shoppers, achieved a $46.5 billion valuation by way of a $639 million funding spherical led by SoftBank Imaginative and prescient Fund.



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