![]() ![]() Companies that enable their merchant networks to offer direct providers' BNPL solutions are called facilitators, such as Mastercard, Shopify or Stripe. As explained by Business Insider, companies such as Klarna, Aftertpay, Splitit, Affirm, Zip and (many) more are BNPL providers. During the forecast period, the fashion industry is anticipated to hold a dominant position in the market.īefore depicting how these companies make money, it’s important to understand the terminology. Moreover, per a Coherent Market Insights report, the BNPL platforms market worldwide was esteemed at USD 7,320.6 million in 2019 and is expected to reach USD 33,638.3 million by 2027 at a CAGR of 21.2% between 20. BNPL equates to around GBP 9.6 billion in annual spending in the UK, while in the US accounted for almost USD 20 billion in 2019. ![]() ![]() One can also observe that while a few years ago Australia and Sweden were the top markets in this area, now, the UK and the US are catching up on this. As well, the COVID-19 pandemic has also played a crucial role in pushing this new shopping habit further for the obvious reason: it’s financially convenient.Īccording to a Worldpay report, in 2020, pay later accounted for 2.1% of ecommerce transactions worldwide, continuing to earn market share, and expecting to double by 2024. This option is still actual and has always been part of the shopping behaviour worldwide.Īt present, there is an uplift in the usage of BNPL solutions for shopping, mostly driven by trends such as Gen Z and Millennials looking for convenient budgeting tools, and the lack of interest fees in many cases. POS financing was typically used for purchasing items such as electronics, furniture, and other household goods. In LATAM and Turkey, instalments have always been a common practice, the services being offered mainly by banks and they were also linked to cards accepted both online and in-store. The pay by invoice method was very popular in the DACH region – where merchants enabled consumers to first choose and try the goods from the catalogues, and pay for them later on. There is a need for a better understanding of how these services work, so we present the bigger picture: the size of the market and business models in this space.īNPL from today had different forms and names decades ago. According to Bank of America, the market for these apps is likely to grow 10-15x by 2025 to eventually process USD 650 billion -USD 1 trillion in transactions. Providers such as Klarna, Afterpay, or Affirm have already paved a way towards the ecommerce ecosystem, by acquiring new customers and expanding their footprints. Buy Now Pay Later industry has massively expanded in the last two years, becoming a useful service for both merchants and consumers. ![]()
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