Buy now, pay later to disrupt lending

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LONDON, June 02, 2022 (GLOBE NEWSWIRE) — BNPL is a new layer on top of the payments infrastructure, with the aim of reducing friction at the point of payment and simplifying access to small loans. Most BNPL industry leaders are new companies pushing market growth while competing with credit card providers.

The Buy Now Pay Later – Thematic Research Report offered by GlobalData provides an overview of the various trends that are impacting the BNPL market. The report also provides an analysis of the industry, as well as the value chain associated with the BNPL market.

Key Technological trends having an impact the BNPL Market

  • Online payments
  • Mobile Payments/Mobile Commerce
  • social media
  • great apps
  • machine learning

BNPL was initially developed around the online payment ecosystem, making its integration into e-commerce platforms a seamless process for merchants and payment technology providers. By integrating at checkout, and in some cases early in the process, BNPL services become an integral part of consumers’ online shopping journey. E-commerce platforms have been a key factor in the rapid growth of BNPL suppliers.

For more information on Technology trends that impact Buy now Pay later theme, download free sample report

Key Macroeconomic trends impactful the BNPL Market

  • Millennials and Generation Z
  • BNPL providers collaborating with card scheme networks
  • Low-income consumers
  • Credit card
  • Inflation
  • Consumer expectations of online shopping
  • Open bank
  • Acquisitions
  • Impact of COVID-19
  • Russia-Ukraine conflict

According to GlobalData’s 2021 Financial Services Consumer Survey, Millennials and Generation Z are the top demographics using BNPL. They are attracted to these services because of the flexibility they offer and their zero-interest model. BNPL’s suppliers use social media and e-commerce platforms to market directly to these consumers. Millennials and Generation Z are the largest audiences using social media platforms, so they naturally became prime targets for BNPL vendors.

For more information on macroeconomic trends that impact Buy now Pay later market, download free sample report

Key Regulatory trends impactful the BNPL Market

  • BNPL Regulations
  • Failure to Properly Disclose Terms and Conditions
  • Strong Customer Authentication (SCA)
  • BNPL Credit Approval Process

The BNPL explosion caught the attention of regulatory authorities. As competition grows fiercer, merchants are gaining more BNPL options, both in provider types (fintechs or banks) and in the economics of their business model. Merchants typically pay their BNPL partner a fixed fee representing a percentage of a consumer’s transaction, but as merchants gain bargaining power, they may seek to reduce this fee. On the other hand, if the BNPL becomes ubiquitous, persistently high fees could lead to regulatory scrutiny because the credit card processing fees merchants pay to card networks are lower.

For more information on regulatory trends that impact Buy now Pay later theme, download free sample report

Key BNPL Value chains

  • Ready
  • Open bank
  • security provider
  • Credit bureaus

For detailed information on Buy now Pay later value chains, download free sample report

First VSBNPL related companies

  • addi
  • To affirm
  • American Express
  • Rising
  • group of ants
  • Apple
  • Barclays
  • Behalf
  • biller
  • billy
  • Bread
  • Bumper
  • Town
  • Curve
  • Goldman Sachs

To learn more about the main BNPL companies, download free sample report

Buy now Pay later Market OOverview

Market size 2021 $120 billion
Key Technology Trends Online Payments, Mobile Payments/Mobile Commerce, Social Media, Great Apps and Machine Learning
Main macroeconomic trends Millennials and Generation Z, BNPL providers working with card scheme networks, low-income consumers, credit cards, inflation, consumer expectations for online shopping, open banking, acquisitions, impact of COVID-19 and conflict Russian-Ukrainian
Main regulatory trends BNPL regulations, proper non-disclosure of terms and conditions, Strong Customer Authentication (SCA) and BNPL credit approval process
Key value chains Loan, Open Banking, Security Provider and Security Provider
Leading companies Addi, Affirm, American Express, Amount, Ant Group, Apple, Barclays, Behalf, Biller, Billie, Bread, Bumper, Citi, Curve and Goldman Sachs

Buy now Pay later Market Report Scope

This report discusses the disruptive potential of the BNPL sector in the payments industry. It identifies the top companies driving growth in the space as well as the benefits BNPL offers to merchants and consumers. The report also discusses BNPL lending risks and future regulatory outlook.

Reasons to buy

  • Understand the key technological, macroeconomic and regulatory trends driving BNPL.
  • Find out how BNPL is challenging the payment card market.
  • Find out how incumbent financial institutions are responding to BNPL.
  • Identify the key players in the sector.

FAQs

What was the BNPL market size in 2021?

BNPL’s market size was valued at $120 billion in 2021.

What are the main technology trends impacting the BNPL theme?

Some of the major technology trends impacting the Buy Now Pay Later theme are online payments, mobile payments, mobile commerce, social media, awesome apps, and machine learning.

What are the main macroeconomic trends impacting the BNPL theme?

Key macro trends impacting the Buy Now Pay Later theme are Millennials and Gen Z, BNPL providers working with card scheme networks, low income consumers, credit cards, inflation, consumer expectations for online shopping, open banking, acquisitions, the impact of COVID-19, and the Russian-Ukrainian conflict.

What are the main regulatory trends impacting the BNPL theme?

The main regulatory trends impacting the Buy Now Pay Later theme are BNPL regulation, failure to properly disclose terms and conditions, Strong Customer Authentication (SCA), and BNPL credit approval process.

What are the value chains in the BNPL market?

The value chains of the Buy Now Pay Later market are Lending, Open Banking, Security Provider and Security Provider

What are the main companies associated with the BNPL theme?

Some of the major companies associated with the Buy Now Pay Later theme are Addi, Affirm, American Express, Amount, Ant Group, Apple, Barclays, Behalf, Biller, Billie, Bread, Bumper, Citi, Curve, and Goldman Sachs.

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GlobalData

To mark Jephcott
PR Manager EMEA
mark.jephcott@globaldata.com
cc: pr@globaldata.com

+44 (0)207 936 6400

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