The Buy Now Pay Later (BNPL) market in the United States is on a rapid growth trajectory, projected to achieve a compound annual growth rate (CAGR) of 27.5% and reach maturity by 2028, according to a recent study by Report Ocean. This growth is largely driven by the convenience and affordability that BNPL platforms offer, making it easier for consumers, particularly younger and tech-savvy demographics, to make purchases and pay in installments. The expansion of e-commerce has further catalyzed BNPL adoption, as consumers increasingly prefer online shopping. Technological advancements, including the integration of IoT, AI, and cloud computing, are enhancing service offerings and customer engagement. However, challenges such as high fees for late payments and the need for consumer education persist. Key players like Sezzle, Klarna, and PayPal are innovating their services and forming strategic partnerships to remain competitive. The COVID-19 pandemic has also played a significant role in accelerating BNPL adoption, highlighting its resilience in uncertain economic times.
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