Photo Credit: PYMNTS
E-commerce prosperity and technological innovation lay the foundation for the popularity of “buy now, pay later”
The COVID-19 outbreak in 2020 had a long-term impact on the consumer market. The normalization of the epidemic accelerated the shift in consumption scenarios to online. The e-commerce market ushered in a period of prosperity and growth, with annual sales exceeding 4 trillion US dollars, an increase of 27.6% over the previous year. According to eMarketer data, the global e-commerce market is expected to reach 6.4 trillion US dollars by 2024, and its share of total retail sales will continue to grow to 21.8%.
The rapid development of online commerce has provided an excellent platform for the popularization of alternative payment solutions. According to the “2021 Global Payments Report” published by FIS WorldPay, BNPL (“buy now, pay later”) will rise by two places by 2024 to become the most commonly used payment method after digital wallets, credit cards, debit cards, and bank transfers, and the market share will increase to 4.2%. However, the advent of the big data wave and advances in machine learning/artificial intelligence have spawned a powerful technical channel that can provide complex credit decision systems that can implement approval and approval, directly responding to the consumer finance needs of consumers excluded from traditional credit products.
Source: eMarketer, Worldpay
“Buy now, pay later” is loved by millennials and Gen Z
Source: FT Partners
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