Consumers increasingly value flexibility in their payment methods, a trend that has contributed to the widespread adoption of buy now, pay later (BNPL) solutions in retail payments. A recent innovation from Klarna and OnePay adds an additional layer to this model.

Exemplifying This Trend

OnePay customers will soon be able to convert debit card purchases into installment loans after the transaction is finalized. For example, a consumer who buys a new TV could, at a later time, experience an unexpected medical expense and use OnePay’s app to transform that purchase into a four-payment BNPL loan.

This feature isn’t groundbreaking but aligns with the general desire among cardholders for flexible payment options, according to Ben Danner, Senior Credit and Commercial Analyst at Javelin Strategy & Research. This partnership showcases the enthusiasm around BNPL by offering it post-purchase,” he explained.

Fintechs Expanding Their Offerings

Klarna, which originally gained traction as a BNPL provider, has since ventured into various other financial services. The company launched a debit card and is pursuing a U.S. bank charter while expanding into peer-to-peer payments in Europe. This strategic diversification mirrors the broader trend among leading fintech firms, many of which are expanding beyond their core products.

PayPal, for instance, has introduced an array of services such as cross-border payments, agentic shopping, and tax filing, indicating a similar expansionary approach.

Impacting the Fintech Landscape

The growing scope of fintech offerings suggests that traditional banks may face challenges in maintaining their customer relationships. As more fintechs integrate banking services into their platforms, the traditional bank relationship centered on demand deposit accounts could become less relevant.

With fintechs continuously expanding and bundling their services, financial institutions will need to emphasize their core strengths if they wish to maintain their customer base in this evolving landscape.