Posted: October 4, 2021 at 5:36 p.m. EDT|Update: 5 hours ago
ROCKVILLE, Maryland., October 4, 2021 / PRNewswire / – For finance companies and traditional banks, Buy Now, Pay Later (BNPL) or Point-of-Sale Install Loan (POSIL) financing requires adopting a next-generation mindset by innovation. Competition with fintechs for installment loan market share and customer retention is forcing traditional lenders, relying on decades of consistent revenue from the credit card unit, to rethink their business models from Consumer credit.
In his just released Buy now, pay later: point-of-sale installment loans (September 2021), Packaged Facts estimates that the BNPL installment loan market in the United States has grown to $ 250 billion in 2020, for a compound annual growth rate (CAGR) of 33% over the previous five years.
While there were concerns that the economic uncertainty associated with the global pandemic could negatively affect BNPL’s installment lending business, it did not, according to the author of the report. Elizabeth rowe.
Instead, consumers shifted much of their retail spending to debit cards and BNPL installment loans as they paid off their credit card debts and curbed household spending, placing custodians. crazy around their budgets. The other main beneficiaries of changing consumer payment preferences have been debit card service providers.
An exclusive property Packaged Facts August-September 2021 An online survey conducted for this report shows that 34% of the sample of 2,000 American adults who are active on the Internet used Buy Now, Pay Later loans, almost double the figure of 18% recorded last February. .March 2020 investigation. Almost half (47%) of recent BNPL loan customers have used PayPal Credit as a provider. Affirm, Afterpay and Klarna also collect significant shares.
While âBNPLâ and âPOSILâ loans are terms used around the world, the products actually available in each country and / or geopolitical territory reflect their specific characteristics. Solutions in each market are tailored based on the wealth of consumers’ households, their experiences with consumer credit, their preferences for specific payment methods, and the overall uptake and usage of Internet by the population, especially mobile commerce.
In some less prosperous markets, BNPL finance is a mature pillar of consumer credit. In the wealthiest economies, dynamic levels of ingenuity and fintech competition have allowed BNPL installment loans to grow faster than any other consumer credit product and twice as fast as credit cards. . This is why this category of credit is hot.
About the packed facts
Packaged Facts, a division of MarketResearch.com, publishes market information on a wide range of topics related to the consumer market, including consumer demographics and information on buyers, food and beverage market, consumer financial products and services, consumer and retail goods, and pet products and services. Packaged Facts also offers a full range of personalized research services. Reports can be purchased from our company website and are also available on MarketResearch.com.
For more essential information on Packaged Facts, be sure to follow us on Twitter (@packaged_facts), LinkedIn and YouTube.
View original content to download multimedia:
SOURCE Packaged Facts
The above press release has been provided courtesy of PRNewswire. The views, opinions and statements contained in the press release are not endorsed by Gray Media Group and do not necessarily state or reflect those of Gray Media Group, Inc.