Buy now, pay later (BNPL) lending has rapidly become one of the more popular lending formats in recent years. Instalment billing is growing, with a variety of formats, players and industries. Payments players have been quick to jump on the bandwagon, but already signs of stress are appearing as BNPL must cope with forces of regulation, consolidation and inflation. This report will explore where BNPL is today, with case studies and a glimpse of the future.
This report comes in PPT.
Buy now, pay later firms are coming in an increasingly number of different spaces, with fintech firms, issuers, networks and retailers all entering the market.
The growth of digital helped set the stage for BNPL to grow via phone commerce. This was accelerated by the pandemic, which pushed many previously reluctant merchants to digitise their payment flows and ordering.
BNPL is no longer just for white goods and other durables – it has grown to all manner of goods and services including travel, daily necessities and even firearms.
Despite very rapid growth, risks are present in the space. Sharp rises in interest rates, challenges in finding creditworthy consumers and saturation among companies mean that BNPL’s future is likely to be quite volatile.
BNPL has been around for years and is here to stay, even with forthcoming challenges. Technology is changing the implementation, and there will be reckonings in a number of regards, but the fundamental model has staying power for players throughout the value chain.
This is the aggregation of ATM, charge, credit, debit, e-purse and retail cards. Note that smart cards are not included in financial cards.
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