BNPL spending to ‘reach $437bn globally by 2027’

Buy Now, Pay Later (BNPL) spending is set to reach over $437 billion globally by 2027, according to new research by Juniper Research.

BNPL allows consumers to pay using regular interest-free instalments, and only requires soft credit checks; making it easier to access than credit.

The 2027 figure is forecast to rise from $112 billion in 2022 – a rise of 291 per cent which Juniper said will be driven by escalating financial pressures from the rising cost of living.

The research found that the most significant issue currently facing the BNPL market is the debt trap and concluded that BNPL’s lack of credit checks pose a considerable market hurdle, as consumers are being approved for larger loans than they are actually able to repay.

However, the report predicts that the introduction of financial regulations in several countries will help alleviate this issue.

Dominique Tetnowski, the research author, explained: “Though the future of the market seems unclear given the plethora of impending regulatory changes, enforcing legislation for eligibility checks will ensure the market develops securely.”

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