Global buy now, pay later market to reach growth over $656B by 2026, Frost & Sullivan
by CM Staff
Growing awareness of the BNPL methods in under-served regions provides opportunities for BNPL providers to expand to emerging markets and reach a larger customer and merchant base.
Buy Now, Pay Later Solutions to Unlock Growth Potential for B2B Companies.
SAN ANTONIO — Zero-interest fees and flexible repayment plans are vital in boosting the global buy now, pay later 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.
Frost & Sullivan’s latest report says the global BNPL market is expected to reach $656.34 billion by 2026 from $136.55 billion in 2021, registering growth at a compound annual growth rate of 36.9 per cent.
“The increasing use of next-generation platforms in digital and e-Commerce spaces has revamped payment methods and enabled customers to control their spending,” said Dewi Rengganis, Information & Communication Technology Industry Analyst at Frost & Sullivan in a statement.
“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 per cent annual percentage rate.”
Frost & Sullivan’s research indicates customers’ increasing adoption of BNPL methods presents key growth opportunities for its market participants listed below.
Business-to-business credit products as 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.
Also, Omnichannel technology and data collection as “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.
Finally, growing awareness of the BNPL methods in under-served regions provides opportunities for BNPL providers to expand to emerging markets and reach a larger customer and merchant base.
