Low cost of credit will drive the number of BNPL users up 157% over the next five years
Juniper Research estimates that the number of Buy Now Pay later users worldwide will increase from 360 million in 2022 to 900 million in 2027. The growth is attributed to the anticipated economic downturn, which will drive the demand for low-cost credit solutions.
Besides, the research suggested India has most potential for rapid BNPL growth. Indian users of low-cost credit solutions are predicted to grow from 25 million in 2022 to 116 million by 2027. The incredible surge will go along with rising eCommerce usage and growing interest in international retail platforms.
Therefore, the study recommends that vendors start to build strategic partnerships with merchants who have established consumer bases in developing markets. Such cooperation will help successfully capitalise on user growth and associated revenue.
Moreover, the research illustrates correlation between adoption of virtual cards and increased usage of BNPL solutions. The advancement of virtual cards helps merchants overcome previous limitations on growth. Besdies, it allows BNPL schemes to compete with credit cards. For instance, single use BNPL cards can be used within a digital wallet to complete contactless transactions in-store.
Thus, BNPL vendors should differentiate their services. In particular, the study reccomends including virtual cards offers, browser extensions that automatically facilitate BNPL payment services, and digital loyalty schemes.