Payments week: the future of BNPL and electric vehicles
The term “scorching summer days” generally refers to the hottest part of the season, when temperatures are at their highest and humidity levels reach their muggy peak. What most people don’t know is that the scorching summer days describe a specific astronomical event first identified by the ancient Romans, which takes place annually between mid-July and mid-July. August, when Sirius (the canine star) is at its peak. in the night sky.
The term originates from the Roman belief that the increased brightness of the canine star was responsible for the increase in heat at the end of summer. The science behind it didn’t hold up, but the phrase “scorching summer days” stuck.
And since we are in the heatwave of 2021, Ingo money CEO Drew edwards admitted that the big events of the week as Square bought Afterpay and bought big in the Buy Now, Later (BNPL) space, while the government meanwhile predicted that electric vehicles (EVs) would make up half of the market automobile in less than a decade left it feeling as mystified as the ancient Romans once were in summer weather.
“I’m a huge Square fan, and I didn’t see this one coming,” Edwards said. “And I still don’t get the entire purchase, now pay for the proposal later.” It’s a different genre and doesn’t target me.
But this is clearly the real deal, he added, especially when it comes to young consumers.
The changing form of the BNPL race
In a summer marked by big moves and changes in the BNPL space, Square has gained worldwide attention with its nearly $ 30 billion acquisition of giant BNPL Afterpay.
Read more: Square takes over afterpay
For Square, said Edwards, the move makes undeniable meaning in the context of Square’s two-way ecosystem – from Square Cash users with cards in their wallets and from merchants to the smallest players now able to connect with. BNPL capacity. It drives sales to its merchants and extends the usefulness of its Cash platform – and pushes the business ever closer to its super-app goals. In the race, Edwards noted, Square has officially given itself a $ 30 billion advance.
But what’s more interesting about this decision, Edwards said, are the ways it has upped the ante in the BNPL race. Buying now, paying later is powerful, he noted, but increasingly looks like something that will not be isolated and fit into a larger ecosystem of financial services offerings.
“If you’re a standalone buyer now, pay later, you might be looking for a partner right now. I mean, who else is out there that needs it, which would get back to the big banks, ”he said. “I guess it would be better to buy rather than try to build it in-house.”
And as bigger players like Apple and PayPal launch into the space, and even large stand-alone companies like Afterpay join in, the pace of the race is changing, along with the shape of which companies might move forward.
EV steps up a gear with a federal push
President Joe Biden promised this week that electric vehicles are expected to account for half of all new car sales by 2030. The new one Executive Decree on the subject is not mandatory, but it encourages U.S. automakers and government officials to support legislation and adoption of electric vehicles, including a goal of zero-emission vehicles using fuel cells and batteries as well. as plug-in hybrid vehicles with internal combustion engines.
And although the new push comes with industry backing from GM and Ford, Edwards has his doubts. Electric car sales represent around 3% of the market so far, he noted, and hitting half in less than 10 years is an ambitious goal bordering on insanity. Edwards said that while he’s normally an early adopter, he’s personally not very keen on switching to an electric vehicle. “They’re going to have to really evolve to tap into the parts that we love about cars,” he said.
Plus, electric cars have infrastructure issues around charging – consumers looking to make longer journeys than from home to their office, he said, need to be able to charge and go just as easily. that they can refuel and go. Electric cars, despite all their potential, are not there yet in terms of infrastructure.
“I still think that there is a technological progress that needs to be made on the battery side, in addition to the infrastructure side,” he said. And then for me, they’re going to have to make this car something that gives me goosebumps. “
And while every consumer might not have this creepy requirement for EVs, consumers need to be confident that EVs can get them where they need to go just as well as internal combustion engines do. old do.
“I’m going to record and say, I don’t think we can do it in eight years,” Edwards said.