The demand for Buy Now, Pay Later (BNPL) services is experiencing unprecedented growth, as highlighted in a recent report by SkyQuest, a research and investment firm. The BNPL market was valued at over $27 million in 2022, accounting for 65 percent of online revenue, and is projected to exceed $1.2 billion by 2031, with an impressive compound annual growth rate (CAGR) of 18.6 percent. This surge is primarily driven by millennials in developed economies embracing e-commerce and the convenience of BNPL solutions. The U.S. Federal Reserve's data indicates a notable rise in credit card usage, and banks could significantly increase their credit limits by integrating BNPL into their offerings. The point of sale phase is crucial for BNPL adoption, allowing customers to make purchases without prior credit checks, thus reducing friction. As consumers seek alternatives to high-interest credit cards, BNPL is rapidly becoming a preferred payment method, reshaping the way people manage their financial obligations.
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