BNPL – the new payment buzzword
While buy now pay later (BNPL) is not an entirely new instalment payment solution, these interest-free short term payment plans have captured a sizeable audience. The global BNPL market was worth US$ 90.69 billion in 2020 and is forecasted to grow at an annual rate of 45.7% to reach US$ 3.98 trillion by 2030.
When Covid-19 accelerated e-Commerce market growth and increased the adoption of online payment, BNPL gained popularity as a tool to manage finances, especially for the credit-starved and cash-strapped. It is estimated that by 2023, 3% of the global e-Commerce revenue will come from BNPL.
Studies showed that merchants saw a 7% higher conversion rate when they added “pay later” to their checkout process, and repeat purchases can increase by 20% when they offer flexible payments. However, another study found that while 60% surveyed have used BNPL, 66% considered it a financially risky service.
How can BNPL companies work with merchants to provide users with greater security assurances?
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