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GlobalData Plc: Buy Now Pay Later to Disrupt the Lending Sector and Payments Industry

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GlobalData UK Ltd
GlobalData UK Ltd

The global Buy Now Pay Later (BNPL) market size reached $120 billion in 2021

LONDON, June 02, 2022 (GLOBE NEWSWIRE) -- BNPL is a new layer adding itself to the payment infrastructure, with the aim of reducing friction at the point of payment and simplifying access to small loans. Most of the leaders in the BNPL sector are new companies that are pushing for the growth of the market while competing against credit card providers.

The Buy Now Pay Later - Thematic Research Report offered by GlobalData gives insights of the different trends impacting the BNPL market. The report also provides industry analysis, as well as the value chain associated with the BNPL market.

Key Technology Trends Impacting the BNPL Market

  • Online payments

  • Mobile payments/Mobile commerce

  • Social media

  • Super apps

  • Machine learning

BNPL was initially developed around the online payment ecosystem, which makes integrating it into ecommerce platforms a seamless process for merchants and payment technology providers. By integrating itself at checkout, and in some cases at the start of the process, BNPL services are a seamless part of the online shopping journey for consumers. Ecommerce platforms have been a key factor in the rapid growth of BNPL providers.

For more insights on technology trends impacting the Buy Now Pay Later theme, download a free report sample

Key Macroeconomic Trends Impacting the BNPL Market

  • Millennials and Generation Z

  • BNPL providers collaborating with card scheme networks

  • Low-income consumers

  • Credit cards

  • Inflation

  • Consumers' online shopping expectations

  • Open banking

  • Acquisitions

  • COVID-19 impact

  • Russia-Ukraine conflict

According to GlobalData’s 2021 Financial Services Consumer Survey, millennials and Generation Z are the main demographics using BNPL. They are attracted to these services due to the flexibility they offer and their interest-free model. BNPL providers are using social media and ecommerce platforms to directly market to these consumers. Millennials and Generation Z are the largest audiences using social media platforms, so they naturally became the main targets of BNPL providers.

For more insights on macroeconomic trends impacting the Buy Now Pay Later market, download a free report sample

Key Regulatory Trends Impacting the BNPL Market

  • BNPL regulation

  • Failure to properly disclose terms and conditions

  • Strong Customer Authentication (SCA)

  • BNPL credit approval process

The explosion of BNPL has attracted regulatory scrutiny. As competition becomes fiercer, merchants are gaining more BNPL options, both in provider types (fintechs or banks) and the economics of their business model. Merchants typically pay their BNPL partner a flat fee representing a percentage of a consumer's transaction, but as merchants gain more negotiating power they may seek to drive those fees down. On the other hand, if BNPL becomes ubiquitous, persistently high fees could lead to regulatory scrutiny because the credit card processing fees merchants pay card networks are lower.

For more insights on regulatory trends impacting the Buy Now Pay Later theme, download a free report sample

Key BNPL Value Chains

  • Lending

  • Open Banking

  • Security Provider

  • Credit Bureaus

For detailed insights on Buy Now Pay Later values chains, download a free report sample

Leading Companies Associated with BNPL Theme

  • Addi

  • Affirm

  • American Express

  • Amount

  • Ant Group

  • Apple

  • Barclays

  • Behalf

  • Biller

  • Billie

  • Bread

  • Bumper

  • Citi

  • Curve

  • Goldman Sachs

To know more about leading BNPL companies, download a free report sample

Buy Now Pay Later Market Overview

Market Size 2021

$120 billion

Key Technology Trends

Online Payments, Mobile Payments/Mobile Commerce, Social Media, Super Apps, and Machine Learning

Key Macroeconomic Trends

Millennials and Generation Z, BNPL Providers Collaborating with Card Scheme Networks, Low-Income Consumers, Credit Cards, Inflation, Consumers' Online Shopping Expectations, Open Banking, Acquisitions, COVID-19 Impact, and Russia-Ukraine Conflict

Key Regulatory Trends

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

Key Value Chains

Lending, 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 leading companies that are driving growth in the space as well as the benefits BNPL provides to both merchants and consumers. The report also discusses the risks around BNPL loans and the future regulatory outlook.

Reasons to Buy

  • Understand key technology, macroeconomic, and regulatory trends driving BNPL.

  • Find out how BNPL challenges 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?

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

What are the key technology trends impacting the BNPL theme?

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

What are the key macroeconomic trends impacting the BNPL theme?

The key macroeconomic trends impacting the Buy Now Pay Later theme are millennials and generation Z, BNPL providers collaborating with card scheme networks, low-income consumers, credit cards, inflation, consumers' online shopping expectations, open banking, acquisitions, COVID-19 impact, and Russia-Ukraine conflict.

What are the key regulatory trends impacting the BNPL theme?

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

What are the value chains in the BNPL market?

The value chains in the Buy Now Pay Later market are lending, open banking, security provider, and security provider

Which are the leading companies associated with the BNPL theme?

Some of the leading 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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About us

GlobalData is a leading provider of data, analytics, and insights on the world's largest industries. In an increasingly fast-moving, complex, and uncertain world, it has never been harder for organizations and decision makers to predict and navigate the future. This is why GlobalData's mission is to help our clients to decode the future and profit from faster, more informed decisions. As a leading information services company, thousands of clients rely on GlobalData for trusted, timely, and actionable intelligence. Our solutions are designed to provide a daily edge to professionals within corporations, financial institutions, professional services, and government agencies.

Media Contacts

GlobalData

Mark Jephcott
Head of PR EMEA
mark.jephcott@globaldata.com
cc: pr@globaldata.com

+44 (0)207 936 6400


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