Buy Now, Pay Later is still on the rise

❓️ What it is - Buy Now, Pay Later (BNPL) means that customers buy items and pay over time. It’s usually targeted to Millenials and Gen Z and grew in demand after COVID and inflation surges. BNPL is also easier to access than credit cards, short term loan tools or store cards and more convenient during recessions

🇺🇸 US Numbers - In the US, 47% more used BNPL on Black Friday compared to a year ago. Its used more by Black, Hispanic and female consumers at the lower to middle income range. Despite its convenience, 10% still incur late fees.

🌏️ Asia Numbers - In Asia, BNPL will account for 4.1% of ecommerce payments in Asia by 2026 according to GlobalData. 70% of adults in SEA are underbanked, have no bank account or debit/credit cards.

🔎 Company watch - Companies like TikTok struck a partnership deal with Atome in Malaysia to have BNPL in its shop. Allowing for deferred payments of 3 or 6 months. Razer, Grab and Shopee also have these options.