The buy now, pay later market is expected to grow 181% by 2024 according to the 2021 Global Payments Report by Worldpay from FIS. In fact, according to the same report, BNPL services—which allow consumers to buy now and pay in installments over time—rose nearly 78% in 2020, the biggest leap of all payment types, and is projected to account for 4% of global e-commerce spend by 2024.
The concept of post-purchase installment programs isn’t new, but the ease of use, flexibility and mutual benefit they deliver at various phases of the value chain have made them one of the fastest-growing segments in payments.
Financial institutions of all sizes need to offer these solutions to compete with alternative point-of-sale installment loan providers like Affirm, Klarna and Afterpay, and issuers like Chase, Citi and American Express—all of which offer some iteration of a flexible repayment plan.
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