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If buy now, pay later apps can establish long-term relationships with users, they could replace credit cards among Gen Z and Millennials.
Simplicity of BNPL
Tailored for ecommerce
Flexibility of payments
Alternative business model
What is buy now, pay later?
Buy now, pay later (BNPL) is a point-of-sale financing option that allows consumers to pay for purchases at a later date, often in installments and at no extra cost. While the concept isn’t new, BNPL has exploded in popularity in recent years, particularly among younger generations.
How has BNPL evolved?
The best-known BNPL brands have been on the market for around five to seven years, refining their offerings and expanding their reach. Over the upcoming months we could see more new entrants into the market as companies target different geographical areas and established lenders launch BNPL solutions to defend their positions.
We can already see examples of such strategies, with Chase, Marcus by Goldman Sachs, Citi, and The Commonwealth Bank of Australia building BNPL offerings based on credit cards.
In 2021, we’ve seen the BNPL landscape continue to change rapidly, particularly during the second half of the year. We discuss the current changes in the BNPL landscape in our report.
Which BNPL companies should I be watching?
Klarna, Afterpay, and Affirm led the early charge in the BNPL market, and now more than 170 companies serve consumers in this growing sector.
Although ongoing partnerships and acquisitions continue to change the landscape, after Klarna, Afterpay, and Affirm, these companies are currently leading the way:
- US: Uplift and Zip
- Europe: Zilch and Alma
- Australia and New Zealand: LayBuy and Brighte
- Middle East: Tamara, Tabby, and Shahry
- Southeast Asia: Kredivo, FinAccel, Rely, and TendoPay