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To compete in this highly competitive landscape, Juniper Research recommends that BNPL vendors must differentiate their services: including offering virtual cards, browser extensions that automatically facilitate BNPL payment services, and digital loyalty schemes. The advancement of virtual cards allows BNPL schemes to compete with credit cards, particularly in-store, where single-use BNPL cards can be used within a digital wallet to complete contactless transactions. The research predicts that adopting virtual cards, where digital-only cards are used for purchases, will increase the usage of BNPL solutions, as they only require merchants to accept card payments – overcoming previous limitations on growth.

BNPL schemes enable consumers to spread the cost of their purchases without interest charges, making them a highly attractive alternative to credit cards. Additionally, BNPL services do not require hard credit checks, and an increasing number of merchants are accepting this payment method, making it easier to access for consumers than traditional credit.

A new study from Juniper Research has predicted that the number of BNPL (Buy Now Pay Later) users will surpass 900 million globally by 2027, increasing from 360 million in 2022. The research identified India as having potential for rapid growth in BNPL, with users predicted to grow from 25 million in 2022 to 116 million by 2027. To find out more, see the new report: Buy Now Pay Later: Regulatory Frameworks, Competitor Leaderboard & Market Forecasts 2022-2027
Download the free whitepaper: Buy Now Pay Later: Reshaping the Payments Market.

India to Experience High User Growth

In turn, it recommends that vendors build strategic partnerships with vendors in developing markets with established consumer bases to capitalise on this user growth and associated revenue successfully. This substantial growth of 157% will be driven by the anticipated economic downturn, which will increase the demand for low-cost credit solutions.

Virtual Cards to Further Boost This is due to rising eCommerce usage and growing interest in international goods available through online retailers.

Written by: Supaporn  Pholrach (Joom)