The global buy-now-pay-later market to reach $467 billion by 2026, report
The global buy-now-pay-later market is expected to grow from $71.20 billion in 2021 to $103.60 billion in 2022 at a compound annual growth rate (CAGR) of 45.5%. The market is expected to grow to $467.34 billion in 2026 at a CAGR of 45.7%. This is according to the latest report by Research and Markets.
In 2021, North America was the largest region in the buy now pay later market. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this buy now pay later market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.
An increase in the adoption of online payment methods is expected to propel the growth of the buy-now-pay-later market going forward. Online payments refer to payments that are made for goods or services that have been purchased online or offline. With the buy now, pay later option, customers can make small-ticket purchases both offline and online and make fast payments.
For instance, in April 2021, according to Razorpay, an India-based financial services company, the rate of digital payment transactions in India during January, February, and March 2021 increased by 76% compared to the same period in 2020, whereas Buy Now Pay Later (BNPL) experienced a staggering growth of 569%. Therefore, the increase in the adoption of online payment methods is driving the growth of the buy-now-pay-later market.
Technological advancement is a key trend gaining popularity in the buy-now-pay-later market. Major market players are concentrating on offering customers cutting-edge digital services to sustain their position in the buy-now-pay-later market. For instance, in January 2022, Temenos, a Switzerland-based software and apps company, launched Temenos Banking Cloud, the first AI-driven buy-now-pay-later banking service in the market.
Through alternative credit products, this offering is expected to give banks and fintechs additional revenue options, assist them in expanding into new areas, and strengthen their connections with customers and business partners. By offering transparency into automated judgments and pairing BNPL customers with suitable loan offers based on their past, Temenos BNPL assists banks in developing lending programmes that are driven by patented, explainable AI technology. Therefore, technological advancement is boosting the growth of the buy-now-pay-later market.
