Key takeaway: BNPL (Buy Now, Pay Later) providers are investing in more granular underwriting and centralized AI product development. Merchant risk and fraud teams working with BNPL partners should expect faster iteration on risk models and pricing. They should also confirm how BNPL providers test and communicate those changes before they reach checkout.
Two buy now, pay later providers moved to sharpen their product and risk infrastructure this week. equipifi rolled out a risk-based pricing update to its BNPL decision tool for banks and credit unions. Zip Co Limited said it will use Google Cloud to build and test new products.
Scottsdale, Arizona-based equipifi supplies BNPL technology that banks and credit unions offer directly to their own customers. The company said its new Risk-Based Pricing enhancement lets clients customize BNPL offers to each account holder’s real-time financial situation, while keeping terms competitive with outside BNPL providers.
The update builds on a 2023 feature that let institutions tailor offers using real-time account and cash flow data. equipifi said a customer making a large purchase could see a tailored offer, while a customer with a similar cash balance but a slightly higher risk profile could see different pricing and terms.
equipifi CEO and founder Bryce Deeney said banks and credit unions already have visibility into account tenure, balances, and cash flow that outside BNPL providers have to piece together. He added that the new pricing capability extends the real-time underwriting his platform already supports.
Separately, Zip said it will use Google Cloud to build what it calls an AI-Native Product Factory, a shared environment for building, testing, launching, and updating new products and customer experiences in the United States. Zip described the move as a shift in its AI strategy: instead of attaching AI to individual functions separately, the company plans to connect customer research, design, engineering, risk, legal, compliance, and customer experience in one shared, governed agentic environment.
ResearchAndMarkets.com projects that the U.S. BNPL market will reach $423.08 billion in transaction volume by 2031. Both companies’ moves come as that market keeps growing.
Why it matters: Risk-based pricing tools and AI-driven product environments both shape how BNPL providers assess and manage exposure before approving a loan. For merchants and processors working with BNPL partners, tighter, more individualized underwriting at the point of sale could mean fewer defaults reaching dispute and collections processes downstream. A more centralized AI development environment could also help a provider adjust its risk controls faster.
Source: Digital Transactions