Research Overview

Customers’ payment preference has shifted from credit to debit, which changed their shopping habits away from bulk credit card payments. Zero-interest fees and flexible repayment plans are among the factors that customers consider when choosing a pay-later method. The buy now, pay later (BNPL) payment approach has emerged as an alternative credit payment—especially for younger consumers who often have a limited credit history and low credit scores. BNPL enables them to make purchases without paying the total amount upfront. This credit solution allows consumers to split payment into 3 or 4 installments over a period up to 2 months with no interest charged.

BNPL providers are emerging, primarily on the strength of their next-generation platforms and well-suited credit underwriting model that are designed to serve customers of various credit levels. Additionally, these platforms integrate seamlessly with a wide range of merchants across industry, size, and order value. This key factor will create more value for both consumers and merchants, drive repeat use of BNPL platforms, and consequently increase transaction value.