What: A white paper dedicated to the BNPL market and what can be expected now.

Why it is important: The report covers the 3 most important topics when it comes to BNPL: number of providers on the market, potential risks of fraud, and, most importantly, the regulation which is soon to be expected given the risks it can create for the customers in a context when purchasing power becomes a key focus for governments.

Buy Now Pay Later solutions have grown 81% in 2021 vs the previous year according to Accenture, and is the 7th most popular payment method in the world. It is increasingly seen as a viable payment alternative for inexpensive everyday purchases bur also for bigger tickets. Its maturity level varies according to the region and while BNPL is popular in Northern Europe and Latin America, there are reservoirs of growth in APAC, US and China.

However, such a growth is a both a blessing and a curse, because while BNPL solutions allow to significantly increase sales, it also encourages customers to make purchases without properly assessing their capability to withstand their debt. As a consequence, retailers are faced with 3 elements to safely consider:

-    The number of players on the market, as a concentration will necessarily occur,

-    Fraud, linked to the softer controls implemented when compared to the more solid and ancient payment solutions (the report reviews the types of fraud that can take place).

-    Regulation, which is on the rise in most of the countries.

A deep dive into Buy Now Pay Later solutions