The number registers as an increase from 360 million in 2022. This growth of 157% will be reportedly driven by the anticipated economic downturn, which will increase the demand for low-cost credit solutions.
BNPL schemes enable consumers to spread the cost of their purchases without interest charges; making them a very viable alternative to credit cards, as per the Juniper Research white paper. Moreover, BNPL services do not require hard credit checks and an increasing number of merchants are accepting this payment method; making it easier to access for consumers than traditional credit.
The research identified India as having potential for rapid growth in BNPL, with users predicted to grow from 25 million in 2022 to 116 million by 2027. These numbers come from the rising ecommerce usage and growing interest in international goods available through online retailers. Juniper Research recommends that vendors build strategic partnerships with vendors in developing markets with established consumer bases, to successfully capitalise on this user growth and associated revenue.
According to the research, from a global market size in 2022 of USD 19.5 billion, BNPL will rise in value to USD 61.5 billion in 2027, at a CAGR of 34.22%.
The Juniper Research study predicts that the adoption of virtual cards – digital-only cards being used for purchases – will increase the usage of BNPL solutions, as they only require merchants to accept card payments, thus overcoming previous limitations on growth. Experts explain that the momentum gained by virtual cards will allow BNPL schemes to compete with credit cards; particularly in-store, where single-use BNPL cards can be used within a digital wallet to complete contactless transactions.
The British consultancy recommends that in order to compete in this highly competitive landscape, BNPL vendors must differentiate their services: including offering virtual cards, browser extensions that automatically facilitate BNPL payment services, and digital loyalty schemes.
Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.
The company recently also issued an in-depth analysis of the rapidly developing position of BNPL schemes in the expanding ecommerce and digital payments market. This includes an assessment of regulatory adjustments in the market and the resulting impact on the operations of BNPL vendors and the spending habits of consumers.
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