The Growth – And Appeal – of Buy Now, Pay Later

[mouakter13]

Buy now, pay later (BNPL) schemes offer consumers immediate possession of goods, which they pay for over time via (usually interest-free) installments. BNPL is similar to layaway (also called “lay-by”), which also involves installment payments – traditionally offered at the point of sale by retailers. But there are differences. With layaway services, the retailer bears the transaction and financial risks and manages the stock inventory, with the item generally remaining at the store. The consumer must first make all timed payments before taking the item home.

BNPL is often the only practical credit option for many people in emerging economies – especially those with limited or no access to financial services. As such, these schemes can offer a path for expanding financial inclusion, along with the inherent benefit of giving consumers access to goods that may otherwise have been unaffordable to them. However, easier access to credit also presents some pitfalls – particularly over-indebtedness – which providers should be careful to avoid.

Below, we’ll discuss the growth of BNPL, the benefits and risks brazil whatsapp number dataassociated with it, and some key practices that can help maximize its positive impacts on consumers while avoiding any potential downsides.



The COVID pandemic resulted in a surge in BNPL as more people shifted to online shopping. Klarna, Afterpay and Affirm, the three biggest BNPL providers globally, are reporting year-on-year growth ranging from 46% to 104%. It is no wonder that more players are entering the BNPL market – a group that will soon include Apple, whose partnerships with online merchants and retail marketplaces will enable their products to be embedded into Apple’s digital platforms to provide seamless consumer journeys with 24/7 access.

In 2021, BNPL accounted for 2.9% of worldwide e-commerce transaction value, which equates to around US $157 billion. This percentage is expected to increase to 5.3% by 2025, according to WorldPay’s 2022 Global Payments Report. Venture capital has flooded into BNPL companies, and this – combined with the sector’s anticipated growth – could result in a significant disruption to the credit card and loans industry.