At NextGen Nordics 2024 in Stockholm, experts participated in a dynamic panel discussion on Buy Now Pay Later (BNPL).
Moderated by Madhvi Mavadiya, Head of Content at Finextra, the panel featured Julie Chatterjee, Chief Commercial Officer at Multitude Bank; Christian Luckow, Senior Vice President of Tribe Lead and Payments at Danske Bank; and Stefan Stignas, Head of Exploratory Banking and Strategic Partnerships at SEB. The panel, titled “BNPL – Are We Entering a New Era of Commerce at POS and with Embedded Finance?”, sparked insightful dialogue.
Mavadiya initiated the conversation with a thought-provoking question regarding Klarna’s success: is it a product of the Swedish fintech landscape or Swedish consumers’ predisposition toward BNPL? Most panelists leaned toward the latter interpretation.
Chatterjee noted that Klarna aligns well with Swedish culture, benefiting from the country’s spending habits and the digitalization of common financial practices. She emphasized that Klarna’s timing coincided with the rise of e-commerce, contributing to its success.
Stignas shared that traditional banks were taken aback by Klarna’s rapid ascent and pointed out that cultural differences influence BNPL’s adoption across various countries. He remarked, “In the Nordic countries, we are raised to pay what we owe, and this is reflected in our legislation. In contrast, American culture has a different approach to debt.”
Luckow echoed this sentiment, highlighting Denmark’s preference for debit cards, which diminishes the popularity of BNPL among Danish consumers.
Stignas expressed optimism about Klarna and embedded finance leading the way forward, particularly in the UK, which is pioneering in fintech despite facing stringent regulations that could shape the future landscape of the global financial industry.
Luckow addressed who benefits from BNPL, cautioning that it can be a valuable financial tool when used appropriately, but may pose risks if offered to those unable to pay back their purchases. He noted that some market players built their business models on excessive interest from consumers, contributing to BNPL’s negative perception.
Chatterjee discussed how Klarna became a favored checkout solution, resonating especially with younger consumers. She advocated for incumbent banks to innovate and tailor offerings that align with modern spending habits to attract this demographic.
Stignas countered Chatterjee’s points about trust in banks, stating that while many may not like their banks, they do value their reliability and regulation. He likened traditional banks to dependable teachers, emphasizing that both banks and fintechs will coexist in the evolving financial landscape.
The panel wrapped up with a conversation on the role of AI in banking, recognizing its potential to hyper-personalize BNPL services while also raising important regulatory considerations.