Global buy now, pay later market to reach a five-fold growth of $656.34 billion by 2026 with omnichannel technology and data collection, says Frost & Sullivan
SAN ANTONIO, May 31, 2022 /PRNewswire/ — Zero-interest fees and flexible repayment plans are vital in boosting the global buy now, pay later (BNPL) market, according to Frost & Sullivan’s latest report. Emerging as an alternative credit payment approach, BNPL aims to meet the need of younger consumers who often have a limited credit history and low credit scores. The global BNPL market is expected to reach $656.34 billion by 2026 from $136.55 billion in 2021, registering exponential growth at a compound annual growth rate (CAGR) of 36.9%.
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“The increasing use of next-generation platforms in digital and e-Commerce spaces has revamped payment methods and enabled customers to control their spending,” explained Dewi Rengganis, Information & Communication Technology Industry Analyst at Frost & Sullivan. “The rise of BNPL can help satisfy consumers’ demand by offering faster credit financing with zero interest fees, compared to legacy payment methods that typically charge up to a 60% annual percentage rate (APR).”
Rengganis added: “Innovative solutions, such as customer-focused apps, point of sale (POS), and merchant commerce solutions, will be essential for facilitating the widespread adoption of BNPL. Data-driven platforms are crucial for delivering customer experience and driving the market growth.”
Customers’ surging adoption of BNPL methods presents the following growth opportunities for its market participants:
- Business-to-business (B2B) credit product: B2B customers tend to make repeat purchases and have payment terms for more than 30 days. Businesses can improve their cash conversion cycle, increase revenue growth, streamline reconciliation tasks, and digitize trade credit processes.
- Omnichannel technology and data collection: A holistic customer experience can be achieved through customer data collection. Creating a partnership with artificial intelligence (AI)-driven technology providers or building in-house data warehouse systems will aid BNPL providers in producing positive omnichannel experiences and a seamless customer shopping journey.
- Expansion to emerging markets: The growing awareness of the BNPL methods in under-served regions provides ample opportunities for BNPL providers to expand to emerging markets and reach a larger customer and merchant base.
Global Buy Now, Pay Later Growth Opportunities is the latest addition to Frost & Sullivan’s ICT research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
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