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Expand buy now, pay later (BNPL) to physical stores. Cash-strapped consumers will look for ways to stretch their dollars during the holidays. These shoppers will be ready to use BNPL at brick-and-mortar locations, meaning retailers can capture incremental purchases by providing in-store payment alternatives.

The shift: BNPL innovation drives its payment share forward. BNPL blends the flexibility of credit, short repayment terms, and app-based shopping into a simple, easy user experience. It will account for 12.1% of ecommerce payments by 2025, according to FIS. The demographics: Older consumers are supplementing BNPL growth.

Consumer complaints have also ramped up, largely related to new technologies NBFIs offer like buy now, pay later (BNPL) and digital currencies. Financial regulators have seemingly stalled on regulations due to the complex interconnectedness of NBFIs and the regulated banking sector, and the quickly developing innovation that NBFIs bring to the financial sector.

Apple is also rolling out its BNPL offering Apple Pay Later. The solution is currently on an invite-only basis, but we expect a full launch this summer. Digging deeper: Read our report on Apple Pay Later to discover how BNPL users may greet Apple鈥檚 upcoming product.

Younger consumers are propping up nascent BNPL growth. The opportunity: BNPL represented 3% of ecommerce payment value in 2021, or C$3.02 billion ($2.32 billion). As of 2022, 3% of Canada consumers had used BNPL in the past 30 days. That鈥檚 less than one-third of US users and one-sixth of UK users.

For example, buy now, pay later (BNPL) online orders jumped 72% the week of November 18 compared with the previous week. BNPL revenues rose 47% over the same period. The Cyber Five (and Black Friday in particular) remain the heart of the holiday season.

And now, with the launch of Apple Pay Later, it may become a fast favorite among teen buy now, pay later (BNPL) users. We forecast that the number of US Gen Z BNPL users will grow 16.1% this year to reach 26.3 million. And that number will keep growing: By 2026, BNPL users will make up over half (50.1%) of Gen Z consumers. Save the planet鈥攁nd some money.

Budget-strapped consumers are also likely to explore alternative payment options like buy now, pay later (BNPL). Retailers should consider partnering with BNPL providers both online and in-store. 2. Prime Day is a predictor of holiday ecommerce sales.

That includes accommodating the growing number of users wanting to use Apple Pay or buy now, pay later (BNPL) methods. The COVID-19 pandemic was a tipping point for many consumers who adopted mobile wallets, and the growth of people using their smartphone to pay regularly is a positive sign for mobile point-of-sale (mPOS) terminals, Morris said.

With the rise of buy now, pay later services and alternative currencies, shopping is more frictionless than ever. These innovations make it easier for consumers to purchase what they need, when they need it, enhancing the overall shopping experience. AI-driven personalization: Advanced AI analyzes consumer behavior and preferences, delivering highly targeted holiday shopping offers.

To help spread costs out, 53% of millennials plan to use installment plans鈥攍颈办别 buy now, pay later (BNPL)鈥攐ften this holiday season, according to a survey from PYMNTS.com. Millennials aren鈥檛 the only ones who will be taking advantage of alternative payment services this year.

Some of those partnerships have gone toward building out its buy now, pay later (BNPL) program as competition intensifies in the space. Despite lingering concerns, Mastercard and Visa are still cautiously exploring crypto. Visa is hiring more developers, and Mastercard recently launched a crypto payments card in Europe. But industry turmoil is forcing the card networks to rethink their strategies.

BNPL is becoming a go-to for Hispanic consumers. Hispanic consumers use BNPL (buy now, pay later) more frequently than non-Hispanic consumers. Hispanic consumers are 47% more likely to use BNPL than the population average. A third (33.3%) of Hispanic consumers made three or more purchases using BNPL in September 2022, according to our survey, compared with 23.9% of non-Hispanic consumers.

Consider offering BNPL solutions. Almost half of credit unions say BNPL is not in their near-term plans, per January 2024 data from PYMNTS Intelligence. But as demand grows, it鈥檚 worth evaluating the option. FIs can evaluate either developing BNPL capabilities internally or working with a third-party intermediary to offer them to customers.

It also launched new products, bulked up its buy now, pay later (BNPL) business, and teamed with Big Tech firms Amazon and Microsoft. Stripe and its rivals are under pressure to maintain growth in a fiercely competitive environment. That鈥檚 forcing them to move into fast-growing markets where payments can be improved.

And it鈥檚 involved in a range of payments tech, like real-time payments; buy now, pay later (BNPL); and fraud management solutions. ACI鈥檚 client list and scale will also appeal to would-be buyers: It counts 19 of the top 20 banks worldwide as customers, processes more than $14 trillion in payments and securities transactions daily, and earned revenues of $1.4 billion in 2021. How likely is a deal?

They could turn to buy now, pay later (BNPL) plans to seek short-term funding for lower or no interest. Personal loans from platforms like SoFi may also attract users as a way to consolidate credit card debt and pay it down at less expensive rates. Digging deeper: Check out our Credit Card Trends to Watch for 2023 report for more on how issuers and networks are tackling inflation.

The Consumer Financial Protection Bureau (CFPB) is weighing whether Apple鈥檚 size limits market competition after it launched a BNPL product. The bureau has broader concerns about Big Tech鈥檚 relationship with payments data. The CFPB is also investigating Goldman Sachs' credit card business, which includes the Apple Card. Sliding customer service.

Buy now, pay later (BNPL) spending will approach $100 billion for the first time in 2023, by our estimates. But most use remains online, leaving considerable in-store volume for the taking鈥攅specially as providers like Afterpay, Klarna, and Splitit actively court merchants and tech partners to simplify in-store acceptance. 4. Account-to-account (A2A) payments are gaining steam.

At the start of FY 2023, it began 鈥渁 multiyear efficiency journey,鈥� which included layoffs and restructuring to focus resources on high-potential growth initiatives like buy now, pay later (BNPL) and Braintree. One of these high-growth opportunities was investing in AI, which led to the announcement of these innovations.

Issuers like JPMorgan and TD Bank introduced new flexible payment offerings in 2022 to compete with buy now, pay later (BNPL) providers and encourage consumer spending. Visa and Mastercard also ramped up their BNPL programs to help them grab a share of the $75.60 billion BNPL market in the US. Consumers embraced flexible payment options as high inflation persisted through 2022.

Expand buy now, pay later (BNPL) to physical stores. Cash-strapped consumers will look for ways to stretch their dollars during the holidays. These shoppers will be ready to use BNPL at brick-and-mortar locations, meaning retailers can capture incremental purchases by providing in-store payment alternatives.

Buy now, pay later (BNPL). Providers like Afterpay and Klarna offer digital payment and financing options that aren鈥檛 tethered to card rails. Their popularity is mounting, with more than 2 in 5 US digital buyers (and nearly 3 in 5 Gen Z digital buyers) set to use the technology in 2023, per our forecast.

Parents anticipate opting out of BNPL as a payment method. Nearly 60% of parents participating in JLL鈥檚 back-to-school survey have no plans to use buy now, pay later (BNPL) for school-related purchases. However, this payment option remains attractive for 20.4% of parents looking to purchase expensive required items.