Santander launches buy now, pay later service Zinia to take on Klarna
Santander London Office Building
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Spanish bank SantanderIn an effort to stop fintech competitors from eating it’s lunch, is creating its own European “buy now, Pay Later” service.
Tuesday’s announcement by the lender stated that Zinia would be rolling out in its various markets across this year. Zinia lets customers split purchases into monthly installments and is interest-free. Its first launch was with the Netherlands.
Santander stated that the technology behind Zinia is operational in Germany since last year. It has attracted more than 2,000,000 customers.
Ezequiel, Santander’s Openbank Online Banking Division CEO, explained that his company wants to be “a leader in buy now, and pay later” market.
Santander’s product was distinguished from other BNPL products like Klarna and Klarna by his emphasis on “security and trust” provided by large financial groups. Afterpay.
You can buy now and pay later with BNPL or Buy Now, Pay Later programs. gained lots of tractionThanks to the rapid adoption of electronic commerce in response to the coronavirus epidemic, the numbers have increased over the years.
These are the major lenders looking to get in on the actionTo be used with Goldman SachsFintech lender to be purchased GreenSkyFor $2.2 billion For $2.2 billion, the U.K. BarclaysA partnership has been formed with AmazonThe U.S. online giant can now offer its customers installment loans.
They could make a lot of money from it at a moment when interest rates are low. In return for allowing their customers to pay them through checkout, BNPL companies make a lot of money.
Regulators are concerned that the BNPL plan market is allowing consumers to take out more debt. While the U.K. Government plans to regulate BNPL products and the U.S. regulators have begun investigating large suppliers in the area.