Global Buy Now Pay Later Platforms Market Is Anticipated To Witness Significant Growth Owing To Increasing Integration Of Artificial Intelligence And Rising Product Launches

 

Buy Now Pay Later Platforms

Overview:

Buy Now Pay Later Platforms offer a new way for consumers to make purchases on the items they love from businesses that accept them. These services provide a streamlined checkout experience, help reduce fraud, and increase conversion, average order value, and customer retention. Depending on the service, they can also offer a flexible payment plan with no interest for installments lasting a few weeks or months and report to credit bureaus to help consumers build credit history. To use a buy now pay later app, customers simply choose that option at the checkout point of an online shopping cart. The app does a soft credit check to pre-qualify them for the financing and then automatically bills their monthly payments to a card or bank account, or takes payments from their checking or savings accounts. The best buy now pay later apps minimize these risks with responsible lending policies and by making it easy for their customers to manage repayments.

Market Dynamics:

Growing partnerships among key players is estimated to augment growth of the global Buy Now Pay Later Platforms Market during the forecast period. For instance, Paycove.io, BigCommerce, OpenPay, and Prestashop partnered up in February 2022, for expanding their services. This partnership will help in serving more customized plans with new customers and merchants. Moreover, increasing late fees charged by BNPL service provider is anticipated to restrain growth of the global buy now pay later platforms market during the forecast period.

Impact of COVID-19:

The pandemic had adverse effects on several countries. The economies of various countries across the globe were severely affected. The pandemic caused imposition of lockdowns in many nations. This hampered all business activities. Supply chains were disrupted and there was a shortage of raw materials. These disruptions affected the overall sales and production of various products. Online retail sector was also facing huge challenges as those services had to be halted. This hampered the growth of the global buy now pay later platforms market. However, in the market is now estimated to witness huge growth as all restrictions have been eased.

Key Takeaways:

The global Buy Now Pay Later Platforms Market is expected to witness robust growth, exhibiting CAGR of 26.1 % over the forecast period, due to increasing acquisitions by key players. For instance, Latitude acquired a buy now pay later provider Humm, in January 2022. This acquisistion will help the company in expanding their BNPL services.

North America is anticipated to witness robust growth in the global buy now pay later platforms market during the forecast period, due to growing usage of internet and smartphone applications.

Key players active in the global buy now pay later platforms market are Perpay, Sezzle, PayPal Holdings Inc., Afterpay, Splitit, Payl8r, Klarna Bank AB, and Affirm Holdings Inc.