During the pandemic, the online sales increased significantly, with this trend, the “buy now, pay later” (BNPL) companies thrived. Shoppers want the good and services with a seamless delayed payment option.
Today, the “buy now, pay later” only has a small portion of overall card spending. However, according to CB Insights’s research, by 2025, the global BNPL industry is expected to grow 10-15 times its current volume, reaching $1 trillion in annual gross merchandise volume. Many banks have started taking measures respond to the emerging threat and to protect their business interests. Some banks have already invested in those BNPL companies and/or strike an agreement with them to develop payment solutions.
Some well-known BNPL companies are Klarna, Afterpay, Sezzle and Zip.
Cover image source: pexel