The services, which are integrated within ecommerce checkout options, including fixed instalment plans and flexible credit accounts, will fuel the 274% growth through a greater appetite from users for credit to spread costs, particularly in the wake of the pandemic, which has put extreme pressure on user finances. The research identified that, while regulations will inevitably place restrictions on services, such as limiting charges or enforcing affordability checks, these changes will not diminish the appeal or growth of the platforms; merely placing them on a more secure footing. The report recommends that vendors focus on improving the transparency and use of credit assessment and reporting now to minimise future disruption.
The new research, Buy Now, Pay Later: Vendor Strategies, Regulatory Frameworks & Market Forecasts 2021-2026, found that, by 2026, Buy Now, Pay Later services will account for over 24% of global ecommerce transactions for physical goods by value, from just 9% in 2021. The research also found that the global number of Buy Now, Pay Later users will exceed 1.5 billion in 2026, from 340 million in 2021. In turn, the report recommends that ecommerce merchants must integrate Buy Now, Pay Later services immediately, or risk losing transactions to other payment platforms which offer preferable payment options.
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