BNPL solutions have disrupted traditional credit mechanisms by offering consumers short-term instalment plans at the point of sale with low or zero interest rates. By 2025, BNPL has spread beyond e-commerce into areas such as travel, healthcare, and education. However, this growth has also attracted scrutiny from regulators worldwide, who are concerned about consumer protection and potential over-indebtedness.

Key Drivers

1. Consumer Demand: As budgets tighten and inflationary pressures rise, consumers seek more flexible payment options, making BNPL an appealing alternative to traditional credit cards.[2]
2. Merchant Benefits: Merchants benefit from increased conversion rates and higher average order values when they offer BNPL at checkout.

Opportunities

• Responsible Lending: Providers that prioritise transparent terms and robust credit checks will likely gain consumer trust and regulatory favour.
• Embedded BNPL: Further integration of BNPL within digital wallets and e-commerce platforms can simplify checkout processes and enhance customer loyalty.

Niche Segments: Players that target specific verticals—such as medical expenses or tuition fees—can differentiate themselves from more general BNPL providers.