BNPL: The Next Generation
The next wave of BNPL is just getting started. And it’s in part being driven by the market - existing providers are following the lead of users who want BNPL options in new verticals, and banks, credit cards, and even big tech companies are responding to demand by launching their own products. What remains to be seen is how eventual regulation will impact the models and accessibility of the next generation of this game-changing payment method. The (Not So) New Players Many of the newest players on the BNPL scene are already household names. Big Tech has entered the game. Amazon has teamed up with Affirm and Apple has launched Apple Pay Later, and Walmart - once a provider of layaway - is entering the market with their fintech, One. These entrants can capitalize on a major draw to the payment method: access and ease. Especially in the case of Apple Pay, which already has over 500 million users globally, a BNPL offering already embedded in a user’s preferred payment method will be an easy conversion. As for Walmart and Amazon (the top two spots on 2022’s Fortune Global 500 ), while offering BNPL may bring in new customers, these retail giants can leverage the payment method as a customer experience boost - the millions of customers that already shop with them will find it faster and easier to make purchases, which improves loyalty and customer lifetime value (CLV).
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