Thursday 28 Mar 2024
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KUALA LUMPUR (June 1): Zero-interest fees and flexible repayment plans are vital in boosting the global buy now, pay later (BNPL) market, according to Frost & Sullivan.

In a report on Tuesday (May 31), the firm said the global buy now, pay later (BNPL) market is expected to reach US$656.34 billion by 2026 from US$136.55 billion in 2021, registering exponential growth at a compound annual growth rate (CAGR) of 36.9%.

Frost & Sullivan information and communication technology industry analyst Dewi Rengganis said the increasing use of next-generation platforms in digital and e-Commerce spaces has revamped payment methods and enabled customers to control their spending.

“The rise of BNPL can help satisfy consumers’ demand by offering faster credit financing with zero interest fees, compared to legacy payment methods that typically charge up to a 60% annual percentage rate (APR).”

She said innovative solutions, such as customer-focused apps, point of sale (POS), and merchant commerce solutions, will be essential for facilitating the widespread adoption of BNPL.

“Data-driven platforms are crucial for delivering customer experience and driving the market growth,” she said.

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