Facebook
Twitter
LinkedIn
Instagram
Youtube

Is BNPL space getting propelled for further growth?

Team Veye | 31 May 2021

Is BNPL space getting propelled for further growth?

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.

Disclaimer

Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing reports. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.