NatWest Ditches BNPL Business

British bank NatWest is killing off its buy now, pay later (BNPL) service less than two years after launch.

The bank will begin closing BNPL accounts from May after lower than expected take up, according to a report.

"We are focusing on our core lending products, helping customers spread the cost of their purchases through our credit cards, overdrafts and loans. This means our Buy Now Pay Later proposition will be closing," says a spokesperson.

NatWest jumped on the BNPL train in 2022, one of several banks moving into a sector that has been dominated by dedicated providers such as Klarna and Afterpay.

The use of BNPL has soared in recent years: a third of UK adults have now used the services, rising to 40% of 18-34-year-olds, according to a recent survey from the Centre for Financial Capability.

Meanwhile, the UK government has delayed plans to roll out a new regulatory regime for the sector.

(Source: Finextra)