July 23, 2022

Buy now pay later


By the end of 2022, buy now, pay later (BNPL) transaction value in the US will grow by 77.3% to reach $75.60 billion, according to a forecast from Insider Intelligence. The number of US BNPL users will jump by 56.1% YoY to 79.0 million this year. Gen Z makes up the heaviest users, with more than half (55.1%) of digital buyers in that group using a BNPL platform this year – followed by millennials, Gen X, and baby boomers. Major retailers like Target and Amazon embrace BNPL, so acceptance is becoming more universal (both on-line and in-store). At the same time, major providers like Klarna and Affirm are doubling down on apps that make it easier for customers to use BNPL. As digital buyers become more comfortable using BNPL services, average spending in the US this year will jump by 13.5% YoY to $957.46 and will surpass $1,000 next year. Insider Intelligence forecasts that BNPL transactions will surpass $100 billion by the end of 2024. But Jaime Toplin, senior analyst at Insider Intelligence, said: “Though BNPL is skyrocketing, regulation looms. The Consumer Financial Protection Bureau’s recent push to caution consumers and subsequent inquiry into BNPL products could signal rule-making on the horizon. Applying new regulations could slow growth, interrupt seamless processes, and raise costs.” Other intrigue news is Apple’s announcement that the company will launch Apple Pay Later in the US later this year.


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