It is difficult to predict how the economic downturn and recession will impact the Buy Now Pay Later (BNPL) industry. As interest rates continue to rise, credit card borrowing is growing more expensive. Now there is a new breed of start-ups that have turned the concept of BNPL on its head. Save Now, Buy Later (SNBL) schemes incentivise saving for big-ticket purchases while avoiding the potential debt trap that comes with BNPL. Mark Beresford (Director, London) along with the Retail Payments Practice at EDC have taken a closer look at SNBL as this new alternative payment method starts to gain momentum.
Our client, one of Europe’s leading online travel retailers
If the value of e-commerce sales is around 25% of global retail sales, physical retail sales represent by far the largest opportunity for in-store BNPL. Mark Beresford (Director, London) and the Retail Practice team looked at if BNPL can work in physical retail, and whether consumer appetite supports it.
Edgar, Dunn & Company (EDC) was asked by the MPE organisers to chair four different panels during the 2022 event.
Just as the UK summer started, Edgar, Dunn & Company looked at how the ‘Buy Now Pay later’ (BNPL) market had developed in Europe. In this latest article, we wanted to share an update of the recent developments in the BNPL market and try to forecast the next 12 months for one of the most dynamic and most rapidly recognised alternative payment methods.
‘Pay later’ shopping typically meant an interest-free period following the purchase, during which no payments were made and no interest charged. After this interest-free period, payment was expected in full – otherwise, interest would be added from the time of the original purchase. Today, the ‘Buy Now, Pay Later’ (BNPL) market has developed, and in Europe – according to Kaleido, the research company – 30% of total eCommerce spend will be via BNPL by 2025.