JACKSONVILLE, Fla.—The buy now pay later (BNPL) market is expected to grow 181% by 2024 and will account for 13% of all global e-commerce payments that same year, making BNPL the fastest-growing segments in payments, according to a new report.
CUToday.info has had extensive coverage around the trend toward buy now pay later financing, most recently here.
The FIS study surveyed 15,000 consumers around the globe in June 2020 and found respondents between the ages of 18 to 39 were particularly receptive to the idea of paying with installments over time.
Among the reasons those consumers cited for the appeal of NBPL:
- Value of having control over their money
- Want to track spending
- Desire to avoid going into unmanageable debt
Nearly half of consumers across all generations said they were comfortable taking on debt they could pay off over the short term, and GenY and GenX (consumers between the ages of 24 and 54) were the most likely to agree with the statement, noted Digital Transactions in its analysis.
Another Consideration
Price-point also matters when it comes to the likelihood of using BNPL options. Half the consumers surveyed would likely use BNPL for a purchase under $250, but the figure dropped to 41% for a purchase between $250 and $999. For purchases of more than $1,000, just 31% of respondents would use a post-purchase installment plan or BNPL option, the study shows.