Surveys from different sources including Grand View Research indicate that the global buy now pay later market size was valued at USD 5.01 billion in 2021 and is expected to register a compound annual growth rate (CAGR) of 26.0% from 2022 to 2030. Buy Now Pay Later (BNPL) is a payment option that allows customers to make purchases online and at stores without having to pay the complete amount upfront. Today, this has expanded not only to online purchases but physical purchases and the service-based industry.
According to a survey conducted in July 2020, approximately 56% of Americans have used a buy now pay later service, up from 38% the year before. There are many reasons why Americans are turning to buy now pay later. These are the leading indicators as why consumers are turning to buy now pay later:
Credit scores have dropped
Some buy now pay later programs do not require a credit score
Cheaper than credit cards
Consumers know that the loan will be paid off in a short-term
Rates are low or even 0%
Inflation and price increases
There are other factors that come in to play. With buy now pay later options, consumers can buy higher price items such as furniture, appliances, computers, and other tangible goods. Buy now pay later with companies like Klarna.com were originally for retailers selling goods between $200 to $500. Today, the buy now pay later market is financing high price ticket items that range from $2,000 to $10,000.
Companies have seen an increase in sales and customer retention. Today, all types of companies can offer this solution. But not all lenders offer the same solution. If your company wants to explore these options visit, BNPL for companies.
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