28 Aug
2023
In today's digital world, people are looking for ways to pay for things online that are easy and flexible. The e-commerce buy now pay later market has taken the world by storm, changing the way consumers purchase goods and services online. With Buy Now Pay Later (BNPL) solutions, customers can buy goods and services immediately and pay for them in installments, eliminating the upfront cost and providing financial flexibility.
According to the recent report published by Allied Market Research, the e-commerce buy now pay later market is predicted to grow a noteworthy CAGR of 45.7% during the forecast timeframe. The global e-commerce buy now pay later market has experienced a surge in growth due to the increasing number of e-commerce platforms, and the growing acceptance of services among millennials in developed countries.
Accenture plc has reported that in the United States since 2018, the number of Buy Now Pay Later users has grown by 300%, reaching 45 million in 2021, with an expenditure of approximately $20.8 billion. Furthermore, several e-commerce businesses in the retail, banking, and healthcare insurance industries are utilizing these services to meet the needs of their global customers.
Some of the market players are also investing in the development of advanced BNPL applications and services. For example, Santander, a Spanish bank, launched their Zinnia Buy Now Pay Later app in January 2022 for the European market. The Zinnia application allows consumers to buy with monthly interest-free installments across Europe.
Another key development by, Coverpay who launched its BNPL service in the general insurance industry in September 2021, with an initial investment of approximately USD 2.5 million. This product is intended for merchants who provide insurance services, including insurers, brokers & authorized representatives, and underwriting agencies.
Latest Trends: The Growing Use of AI Technology in Applications to Accelerate Growth-
Nowadays, artificial technology (AI) and machine learning technologies offer a big opportunity to help service providers develop models in real-time and enhance their decision-making capabilities. Several market players are developing AI-driven models to speed up their consumer market penetration rate. For instance, In January 2022, AI-powered Buy Now Pay Later (BNPL) banking was introduced by Temenos, a banking software firm, as part of Temenos Banking Cloud. The Temenos Banking Cloud is built on AI technology that provides consumers and merchants with alternative credit options.
Also, Credit Intelligence Limited teamed up with the University of Technology in Sydney in February 2021 to expand its AI capabilities. Credit Intelligence Limited has taken over the Fintech platform YOZOO, which is designed for the adoption of advanced technology in the field of Artificial Intelligence (AI) to expand business operations in various areas, including debt restructurings, debt collection, and debt factors, in Australia and Asia. The objective of Credit Intelligence Limited is to bring Artificial Intelligence capabilities for Buy Now Pay Later (BNPL) and financial management to small and medium-sized enterprises. Thus, the global market will be driven by the growing use of AI to enhance the real-time experience of consumers.
Therefore, taking advantage of these rising trends the e-commerce buy now pay later market is evolving at an incredible pace revolutionizing online shopping by offering financial flexibility, user-friendliness, and a seamless shopping experience to the consumers.
Rosy Behera
Author's Bio- Rosy Behera holds a bachelor’s degree in Electrical and Electronics Engineering and now she is a content writer by profession. She loves to portray her thoughts and ideas with a nice command of words. Grabbing an audience with her creative write-ups is one of her biggest assets so far. Apart from writing, she is a certified “Odisi” dancer and has done Gardharva in Drawing, Painting, and Arts. She always explores new things through travel and is a big foodie.
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