News • 24.06.2021

Flexible payment: huge growth expected

Buy now pay later services spend to reach $995 billion globally in 2026

Hand holds a smartphone which shows a green circle with a checkmark...
Source: Franck/Unsplash

A new study from Juniper Research has found that spending via buy now pay later services, which are integrated within eCommerce checkout options, including fixed instalment plans and flexible credit accounts, will reach $995 billion in 2026, from $266 billion in 2021. This 274% growth will be fuelled by a greater appetite from users for credit to spread costs, particularly in the wake of the pandemic, which has put extreme pressure on user finances.

The research identified that, while regulations will inevitably place restrictions on services, such as limiting charges or enforcing affordability checks, these changes will not diminish the appeal or growth of the platforms; merely placing them on a more secure footing. The report recommends that vendors focus on improving the transparency and use of credit assessment and reporting now to minimise future disruption.

Buy now pay later to bBecome highly significant within e-commerce

The new research, Buy Now Pay Later: Vendor Strategies, Regulatory Frameworks & Market Forecasts 2021-2026, found that, by 2026, buy now pay later services will account for over 24% of global eCommerce transactions for physical goods by value, from just 9% in 2021.

Research co-author Damla Sat explains: ‘As a tool to split the cost for users, buy now pay later is ideally suited for high-cost items, as it enables users to seamlessly split large costs into smaller, more manageable payments. By 2026, these platforms will increasingly become the norm for lower-cost purchases as well; driven by user demand and eCommerce platform integrations.’

Buy now pay later users to exceed 1.5 billion in 2026

The research also found that the global number of buy now pay later users will exceed 1.5 billion in 2026, from 340 million in 2021. In turn, the report recommends that eCommerce merchants must integrate buy now pay later services immediately, or risk losing transactions to other payment platforms which offer preferable payment options.

Source: Juniper Research

related articles:

popular articles:

Thumbnail-Photo: Top 500 European cross-border online shops
06.04.2022   #online trading #e-commerce

Top 500 European cross-border online shops

4th edition of the annual ranking by Cross-Border Commerce Europe

Cross-Border Commerce Europe, the platform that stimulates cross-border e-commerce in Europe, releases a major research paper covering and ranking the 500 strongest European players with a focus on cross-border performance.The total online EU ...

Thumbnail-Photo: Visual search – Finding products with images...
28.06.2022   #online trading #e-commerce

Visual search – Finding products with images

Not only the result, but also the user experience is crucial

In online retail, a well-developed and easy-to-use product search is essential for customers. For a high level of convenience and optimal results, this now includes visual search. This means that users can search for similar items using images of ...

Thumbnail-Photo: Cross-border e-commerce to exceed $2 trillion for first time in 2023...
14.04.2022   #e-commerce #payment systems

Cross-border e-commerce to exceed $2 trillion for first time in 2023

Juniper Research: Cross-border e-commerce to account for 38% of all e-commerce transactions globally by value in 2023

A new study from Juniper Research has found that the value of cross-border e-commerce will exceed $2.1 trillion in 2023, from $1.9 trillion in 2022. This growth of over 13% in a single year reflects the increasing success of marketplaces which offer ...

Thumbnail-Photo: American and European retail brands bounce back better as values...
02.05.2022   #retail #coronavirus

American and European retail brands bounce back better as values increase post-COVID

Big retailers like Amazon and Walmart apply their logistics expertise to adapt in innovative ways to the ‘new normal’

American and European retail brands are leading the global retail sector in bouncing back better from the pandemic, with Amazon and Walmart leading the way. In a world of changing customer demand and disrupted supply chains, these big retailers are ...

Thumbnail-Photo: Renting instead of buying: A sustainable consumption system on the rise?...
04.04.2022   #sustainability #fashion

Renting instead of buying: A sustainable consumption system on the rise?

Highlights from a webtalk about subscription services and circular economy at Decathlon

Companies often find themselves in a balancing act: they have to prioritize between long-term and short-term goals. How much do we invest in sustainable business models and environmental and climate protection? Many entrepreneurs are faced with ...

Thumbnail-Photo: Convenience Experience Report: Demand for short lines, mobile ordering,...
05.07.2022   #food retail #customer experience

Convenience Experience Report: Demand for short lines, mobile ordering, and drive-thru

Americans put convenience stores on par with fast food restaurants

Bluedot introduced the first Convenience Experience Report, a benchmark study that explores consumer sentiment and the customer experience at gas stations and convenience stores (c-stores).The research was based on a survey of 1,570 American ...

Thumbnail-Photo: In-store marketing: The salt in the soup of sales promotion...
01.07.2022   #e-commerce #sustainability

In-store marketing: The salt in the soup of sales promotion

How to positively influence the shopping experience of your clientele

Soft music in the background, delicious scent, pleasant lighting – Sounds like dinner at your favorite restaurant? Almost. Because atmospheric design elements are also important ingredients for the perfect in-store shopping experience in ...

Thumbnail-Photo: Neiman Marcus celebrates launch of new collection...
27.06.2022   #brick and mortar retail #shop design

Neiman Marcus celebrates launch of new collection

Valentino partners with Neiman Marcus for the launch of the Valentino Escape 2022 collection

Valentino is collaborating with Neiman Marcus as the national exclusive brick-and-mortar luxury retailer for the launch of the Valentino Escape 2022 collection. To celebrate the partnership, Neiman Marcus is hosting a festive launch event on June 21 ...

Thumbnail-Photo: Ynvisible supports sustainable fashion with digital price labels...
13.05.2022   #digitization #sustainability

Ynvisible supports sustainable fashion with digital price labels

New generation is easily readable, flexible and customizable

Ynvisible Interactive Inc. has announced that Digety, a company creating electronic price labels for the fashion industry, has selected Ynvisible as the supplier of displays for its re-usable digital price labels. Digety’s price labels ...

Thumbnail-Photo: Top 5 retail trends for 2022 providing new opportunities...
27.06.2022   #online trading #e-commerce

Top 5 retail trends for 2022 providing new opportunities

The five most important trends in retail that entrepreneurs can use to seize their opportunities

I have always believed in getting into the mind space of our customers. So lately, I've been interviewing a lot of retail customers and have learned a great deal about the challenges retailers face. But among those challenges, there are also ...

Supplier

EuroShop
EuroShop
Stockumer Kirchstraße 61
40474 Düsseldorf
salsify
salsify
7 rue de Madrid
75008 Paris
iXtenso - retail trends
iXtenso - retail trends
Celsiusstraße 43
53125 Bonn
Chili publish NV
Chili publish NV
Neue Schönhauserstraße 3-5
10178 Berlin
SALTO Systems GmbH
SALTO Systems GmbH
Schwelmer Str. 245
42389 Wuppertal