Adopt Now, Not Later: Accelerate Issuer Growth with Buy Now, Pay Later Strategies

Friday, December 10, 2021

What are the numbers?

As “buy now, pay later” purchase strategies go mainstream, issuers need to lean in and fill the gaps with their own lending experiences or potentially face a steady erosion of transaction volume and, potentially, customers.

Buy now, pay later (BNPL) solutions have surged in recent years, presenting a real threat to the interest and fee income issuers have enjoyed for decades. In fact, transaction volume for BNPL soared to $39 billion in 2020, from $3 billion in 2019, and is expected to reach $55 billion this year and $114 billion by 20241. That’s a two-year compound annual growth rate of 328%!

While it’s still just a drop in the bucket when compared to Visa and Mastercard transaction volumes of approximately $5.7 trillion in 20192, BNPL is an important and fast-growing commerce experience that consumers really like. For starters, they gain instant credit approval with no hard inquiry on their credit report, and they also get predictability of payments and the convenience of paying for items through super apps.

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