Juniper Research - buy now pay later space set for substantial growth
The number of buy now pay later (BNPL) users will surpass 900 million globally by 2027, increasing from 360 million in 2022, according to Juniper Research.
This growth of 157% will be driven by the anticipated economic downturn, which will increase the demand for low cost credit solutions.
India
Juniper Research identified India as having potential for rapid growth in BNPL, with users predicted to rise from 25 million in 2022 to 116 million by 2027.
This is due to rising e-commerce usage and growing interest in international goods available through online retailers.
In turn, vendors should build strategic partnerships with vendors in developing markets with established consumer bases, to capitalise on this user growth and associated revenue.
Virtual cards
The adoption of virtual cards, where digital only cards are used for purchases, will increase the usage of BNPL solutions, as they only require merchants to accept card payments - overcoming previous limitations on growth.
This advancement allows BNPL schemes to compete with credit cards; particularly in-store, where single use BNPL cards can be used within a digital wallet to complete contactless transactions.
Juniper Research recommends that in order to compete in this landscape, BNPL vendors must differentiate their services: including offering virtual cards, browser extensions that automatically facilitate BNPL payment services, and digital loyalty schemes.
