US and international market for buy it now, pay later


Dublin, October 15, 2021 (GLOBE NEWSWIRE) – The report “Buy Now, Pay Later: US Point of Sale Installment Loans and International Perspectives, 2nd Edition” has been added to to offer.

Buy Now, Pay Later (BNPL) credit volumes soared even before the global COVID-19 pandemic as consumers shifted their funding preferences from revolving credit products like credit cards to installment credit products.

After the initial outbreak of the pandemic and subsequent waves of variants and variable infection rates, consumers quickly paid off their outstanding credit card balances as well as their use of debit cards and BNPL installment loans. In a landscape of unstable economic recovery and uncertain health outcomes, consumers sought and used budget and payment methods that matched those trends and gave them greater control over their household finances.

Consumer credit is a multi-trillion dollar industry in the US, with the volume of BNPL installment loans (also known as point-of-sale or POS installment loans) subsumed under the personal loan category of financial results.

This report breaks BNPL Installment Loans out of their parent category and includes estimates of the US market size for 2015 vs. 2020, as well as projections for each year through 2025. These projections were made in the context of the rapid changes in consumer payment preferences during. develops the pandemic as well as macro-American economic and consumer trends.

While this report focuses on the US BNPL installment loan industry, it also covers the broader context of BNPL financing in Asian, European and Latin American countries.

This report examines the current credit behavior of US consumers; strategic positioning initiatives by financial technology companies (fintechs), banks, card issuers and card networks; and the cross-border rollout of these initiatives across product categories and trading platforms.

It also analyzes each of the key business models in the industry and examines the potential feasibility of each as more and more actors join in and bring in their own marketing messages, trading partnerships, and revenue models.

The report provides a full industry context for BNPL Installment Loans, an assessment of the strategies and success of existing and new entrants in the industry, and a detailed analysis of the opportunities and challenges for those entering or competing in the BNPL sector.

Key issues covered

1. Summary

  • Scope & methodology
  • Scope of report
  • Reporting methodology
  • BNPL market trends
  • Upswing even before COVID-19
  • Longer-term payment trends accelerated
  • Credit cards affected by payment changes in the pandemic
  • BNPL in the payment landscape
  • BNPL was created for a global pandemic
  • Credit card balances fell with shutdown. and then consumers paid off their credit
  • Debit card use increased during the pandemic
  • Robust CAGR of 15% forecast for BNPL 2020-2025
  • Trends and opportunities
  • Banks
  • Merchants
  • Fintechs
  • Robust and smooth digital strategy is essential
  • Responsible lending in a coronavirus-changed economy
  • Diverse strategies based on credit segmentation

2. Market growth opportunities

  • Strategic considerations for market participants
  • Consumers research and shop on the go, even when buying in-store
  • Emphasis on responsible lending
  • Accelerating BNPL Growth
  • The conversion of installment loans

3. US industry context

  • The consumer credit market before BNPL installment finance
  • Financial companies and credit card / business card lines of credit
  • The opportunity that BNPL Finance created
  • BNPL loans have turned small dollar consumer finance on its head
  • Consumers are receptive to new ways of buying and paying
  • The backstory of BNPL
  • E-commerce growth fueled retailers’ need for differentiation and competitive advantage
  • Transferring BNPL funding in e-commerce to a larger market

4. BNPL funding in the US

  • Industry growth forecast
  • 2021 will be a year of acquisitions and partnerships in the industry
  • Robust 23.2% CAGR forecast for 2021-2025
  • Summary of the rationale for longer term projections 2020-2025
  • Important growth drivers
  • New market niches, new player strategies contribute to growth
  • Consumers Open to BNP: Loans
  • Fintechs use consumer payments to build customer relationships
  • New strategies of traditional financial institutions
  • Important competitive challenges
  • Challenges determined by the player’s role in the payment transaction
  • Payment friction
  • Regulatory supervision: Business models of BNPL providers invite review
  • Competitive pressure prices
  • Use of BNPL installment from large ticket to smaller ticket elements
  • Consumers avoid new credit card accounts

5. The US BNPL customer

  • Survey results
  • Total usage and key cohorts
  • PayPal credit is the most widely used BNPL loan provider
  • Timeliness and frequency of use of BNPL credits
  • BNPL credits by amount borrowed
  • Platforms for the use of BNPL services
  • Features of the use of BNPL loans

6. The US BNPL funding dealer

  • Significant advantages for dealers
  • Consumers who demand a product
  • Airlines

7. US Dynamics: Traditional Players

  • US banks and card issuers join the BNPL financial market
  • US banks
  • Bank: Citizens Finance
  • Consortium: GreenSky Financial
  • Card issuer: Citibank
  • Bank: Goldman Sachs
  • Card issuer: JPMorgan Chase
  • Financial company: Synchrony Financial
  • Card networks enter the BNPL financial market
  • Industry context
  • Visa
  • American Express
  • MasterCard

8. US Dynamics: Fintechs

  • International fintechs are driving innovation in US BNPL funding
  • Fintechs targeting credit / no-credit consumers
  • Klarna
  • Largest BNPL provider valued at $ 45.6 billion
  • Klarna’s market performance has investors screaming to give it millions of dollars
  • Klarna’s US focus
  • Klarna Vibe loyalty program
  • Klarna offers consumers three BNPL financing products
  • Klarna reports that its product increases the average order value by 68%
  • With the in-app browser, buyers can use Klarna anywhere on the internet
  • PayPal balance
  • As of 2008, PayPal Credit has provided $ 50 billion in BNPL installment loans
  • Open up new regional markets with BNPL acquisitions
  • Marketing to both merchants and PayPal users
  • PayPal Credit introduces Pay in 4 to its Pay Later list
  • Pay in 4 was PayPal’s answer to its competitors and its merchant demands
  • Confirm
  • As of 2016, Affirm has processed $ 15.0 billion for merchants
  • Investor Pop brought its IPO to $ 23.2 billion in January 2021
  • Affirm started out as a payment option for sub-prime consumers
  • Most offers are made through e-commerce and an in-app shopping browser
  • Walmart offers certified BNPL loans in its 4,000 U.S. stores
  • Amazon, Peloton and Affirm
  • Affirm’s AI allows 126% more borrowers than Synchrony
  • Acknowledge at a strategic crossroads to achieve profitability
  • additional payment
  • Afterpay offers a single, interest-free product
  • His “mall” of Afterpay Stores is available online or through his app
  • Virtual card brings Afterpay into the payment options of the largest retailers
  • Afterpay shows solid growth in the UK
  • Acquired by Square for $ 29 billion
  • Amazon
  • Amazon’s BNPL options
  • Credit details
  • Sezzle
  • Sezzle built important partnerships in 2020 and 2021
  • Sezzle’s game: 4 interest-free payments over 6 weeks
  • In 2 years Sezzle grew from 1 million customers to 2.9 million customers
  • Sezzle signs a contract with Target and introduces a loyalty program
  • New BNPL functions
  • BNPL product expansion with Ally Financial for purchases up to $ 40,000
  • Increasing growth
  • Sezzle’s IPO creates excitement among Australian investors for BNPL Finance

9. International market dynamics

  • Global snapshot
  • overview
  • Latin America
  • China
  • Western Europe
  • National debt and payment preferences
  • BNPL is growing twice as fast as credit cards
  • BNPL growth is being driven by consumer desire for payment options
  • Payment options inform UK consumers of retailer choices
  • Europeans use a wide range of e-commerce payment options
  • Finally Germany switched to credit cards and BNPL financing
  • Benefits of e-commerce and advanced BNPL technology
  • Brazil
  • Largest Latin American marketplace
  • Robust installment loan ecosystem
  • Increasing consumer financial services
  • More internet and more smartphones
  • Previously, consumers left stacks of postdated checks in installments
  • Brazilian retailers quote the installment price, not the full retail price
  • Rates used on 80% of Brazilian ecommerce purchases
  • In other markets, fintechs collect buyer payments
  • The largest categories of e-commerce are electronics and travel
  • Intimidating import tariff law to reduce e-commerce volume
  • Mexico
  • Mexico’s e-commerce value more than doubled between 2014 and 2019
  • Debit cards are not authorized for digital commerce
  • The country’s largest C-store enables consumers to buy online and pay cash in-store
  • Market solution for cash payments in e-commerce still required
  • China’s high level of mobile trade
  • Stricter rules tampering with the Chinese BNPL
  • China and the countries it invests in are the most advanced BNPL financial markets
  • Tencent
  • Alibaba
  • Chinese tourists use it to open up new markets
  • Trade wars thwart plans

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