202121 Sep

How buy now, pay later became a $100 billion industry

Summary

Meanwhile, big companies are jumping on the bandwagon, with PayPal launching its own product, Amazon and Apple partnering up with Affirm, and Square agreeing to buy Afterpay in a $29 billion deal. The advantage for shoppers is that they can buy a more expensive item than they might normally be able to pay for in one go — say, a $300 jacket — and spread the cost of their purchase over monthly instalments. According to a report from Worldpay, the payment processing firm owned by FIS, global e-commerce transactions totaled $4.6 trillion last year, up 19% from 2019. While BNPL plans had already been growing in popularity prior to the pandemic, a shift in consumer spending habits and surging e-commerce adoption gave the market a significant lift. Which?, a consumer advocacy group in the U.K., says it conducted an investigation which found that almost a quarter of BNPL users spent more than they initially intended to because the service was available.

Source: Cnbc

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