The banking and payments industry continues to be a hotbed of innovation owing to ever-changing consumer expectations. The rapid technological developments in the areas of banking and payments that aim to offer seamless experience to consumers are now becoming even more vital for industry participants as competitors leverage new technologies such as artificial intelligence, Internet of Things, cybersecurity, and embedded finance as they compete to stay relevant and grow in the market. In the last three years alone, there have been over 92,000 patents filed and granted in the banking industry, according to GlobalData’s report on Online payments in Banking: BNPL payment protocols.

According to GlobalData’s Technology Foresights, which uses over 195,000 patents to analyse innovation intensity for the banking industry, there are 60+ innovation areas that will shape the future of the industry.

BNPL payment protocols is a key innovation area in online payments

Buy Now, Pay Later (BNPL) is a short-term financing service that allows consumers to pay for purchases of goods and services at a later date. The payment can be made in one go or in multiple installments. If payments are made within the specific due dates, no interest is charged to the customer.

GlobalData’s analysis also uncovers the companies at the forefront of each innovation area and assesses the potential reach and impact of their patenting activity across different applications and geographies. According to GlobalData, there are 20+ companies, spanning technology vendors, established banking companies, and up-and-coming start-ups engaged in the development and application of BNPL payment protocols.

Key players in BNPL payment protocols – a disruptive innovation in the banking industry

‘Application diversity’ measures the number of different applications identified for each relevant patent and broadly splits companies into either ‘niche’ or ‘diversified’ innovators.

‘Geographic reach’ refers to the number of different countries each relevant patent is registered in and reflects the breadth of geographic application intended, ranging from ‘global’ to ‘local’.

Patent volumes related to BNPL payment protocols

Company Total patents (2010 - 2021) Premium intelligence on the world's largest companies
Toshiba 222 Unlock company profile
Nant Holdings Ip 147 Unlock company profile
Walmart 110 Unlock company profile
Dynamics 93 Unlock company profile
Memjet Technology 93 Unlock company profile
Cloudparc 56 Unlock company profile
Mitek Systems 49 Unlock company profile
Nio 40 Unlock company profile
NEC 39 Unlock company profile
Digimarc 20 Unlock company profile
SoftBank Group 18 Unlock company profile
Visa 15 Unlock company profile
JPMorgan Chase 15 Unlock company profile
NCR 13 Unlock company profile
Casio Computer 13 Unlock company profile
Capital One Financial 11 Unlock company profile
Mashgin 10 Unlock company profile
Trax Technology Solutions 9 Unlock company profile
China UnionPay 7 Unlock company profile
ArcSoft 7 Unlock company profile
MX Technologies 7 Unlock company profile
Intuit 7 Unlock company profile
USAA 6 Unlock company profile
Wistron 6 Unlock company profile
Fujifilm Holdings 6 Unlock company profile
Extreme Networks 5 Unlock company profile
Toyota Motor 5 Unlock company profile
Stryker 5 Unlock company profile

Source: GlobalData Patent Analytics

Visa is one of the leading patent filers in BNPL services. The company, in June 2022, filed a patent for wireless biometric system. It leverages customers’ biometrics such as fingerprint, facial scan or iris scan, and voice for the purpose of user verification. Some other key patent filers in the BNPL industry include Toshiba, Nant Holdings, Walmart, Dynamics, and Memjet Technology.

In terms of application diversity, Memjet Technology leads the pack. Nio and Stryker stood in the second and third positions respectively. By means of geographic reach, Visa holds the top position, followed by China UnionPay and Fujifilm Holdings.

To further understand the key themes and technologies disrupting the banking industry, access GlobalData’s latest thematic research report on Online Payments.

GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.

GlobalData’s Patent Analytics tracks patent filings and grants from official offices around the world. Textual analysis and official patent classifications are used to group patents into key thematic areas and link them to specific companies across the world’s largest industries.