One thing which has always enticed a shopaholic the most is the idea of buying now and getting to pay later. When the pandemic was changing the shopping habits of most individuals, another latent transformation was taking place simultaneously.
Digital commerce payment platforms were getting revolutionised to optimize the customer payment experience as it became apparent that payment acceptance will never be the same after the pandemic.
Initially Buy Now Pay Later companies were also considered to be just hype. And, since credit is credit, one way or another, it was also greeted with a lot of skepticism.
Though similar to how credit cards work, Buy now pay later can make it possible for retailers to move products quickly out of inventory. Stores can also offer their own financing, similar to the store-specific card of earlier days.
With the ability to increase impulse buys and drive additional eCommerce sales, it is no wonder BNPL is the next big payment trend in the online retail world.
The global buy now pay later platforms market which was valued at US$ 7,320.6 Mn in 2019, is now expected to reach US$ 33,638.3 Mn by 2027 at a CAGR of 21.2% between 2020 and 2027.
While the BNPL space is being entered by many new players, the merchants are also getting realigned. Afterpay and Qantas Frequent Flyer had announced an exclusive partnership that allowed members to earn Qantas Points through the Afterpay platform.
BNPL firms are also experimenting with consumer focused platforms and tools They are launching in-store products and delivering personalised recommendations based on consumer activity.
Buy now, pay later is fast coming up as an emergent layer in the credit space. It has been rising so rapidly in popularity that now even the big banks are rushing to get on board.
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