Buy-Now-Pay-Later Tech Pioneers Squeezed as Big Banks Muscle In

Tech mavericks who made buy-now-pay-later an option for shoppers worldwide are grappling with mounting losses and investor skepticism. Now big finance is on their tail.

British retail giants NatWest Group Plc, HSBC Holdings Plc, Barclays Plc and Virgin Money as well as Visa Inc. and Mastercard Inc. have recently launched new ways to spread the cost of purchases as they cater to the gradual shift from credit cards to the kinds of services offered by newcomers Klarna Bank AB, Affirm Holdings Inc. and Afterpay.

“Even though banks are just getting started, they are well positioned to ...