Consumers will spend $437 billion annually using Buy Now, Pay Later (BNPL) platforms by 2027, up from $112 billion this year, according to a new report from Juniper Research. The U.K.-based consultancy said an uncertain economy will drive the growth as consumers increasingly turn to debt as a way to finance purchases.
BNPL has become a widely adopted online payment method over the past several years, especially for younger consumers. But, while an unsettled economy will result in even more growth for BNPL, regulators around the world are casting an increasingly critical eye. The Juniper report recommends merchants and their BNPL providers clearly communicate all fees, policies, terms and conditions to consumers.
“Though the future of the market seems unclear given the plethora of impending regulatory changes,” said research author Dominique Tetnowski, “enforcing legislation for eligibility checks will ensure the market develops securely.”
Merchants and providers also need to work closely with each other to limit the fraud, which has proliferated early in BNPL’s existence (a common malady for new payment methods).
