With all the flexibility it offers consumers, it’s no surprise that buy-now-pay-later (BNPL) payment solutions continue to grow in popularity. In fact, as of 2023, some 36% of U.K. adults had used buy-now-pay-later, with an additional 13% intending on using the technology in the future.
How different generations leverage BNPL to achieve financial goals
Considered a short-term lending solution, BNPL isn’t just about convenience. By generation, consumers are taking advantage of this payment option to advance their different financial goals. Millennials use BNPL to buy big-ticket items for their first homes. Gen Zers are using these solutions as a way to build credit history. And consumers of all ages are commonly using BNPL as a way to make installment payments on air travel, giving them the ability to take advantage of low prices when they come up, regardless of budget.
While recent research shows that BNPL payments in the U.K. are forecast to grow by more than 20% each year, reaching a value of £26.13 billion by 2028, the market is far from tapped.
Key insights from the livestream: the future of buy-now-pay-later
In our recent API Chronicles Livestream, Marqeta assembled an expert panel of payments industry leaders to discuss the current state of the buy-now-pay-later landscape and what the long-term future of short-term lending holds.
Facilitated by Jas Shah, fintech product consultant at Bitsul, this informative session featured a collaborative and thoughtful conversation among:
- Christian C. Waldheim, CEO of Credi2
- Matthias Dekan, Head of Payments at Raiffeisen Bank International
- Biljana Petrushevska-Trajkovska, Solutions Engineer at Marqeta
The livestream is complete, but we invite you to watch (and rewatch!) a recording to discover in-depth discussion and key takeaway insights on BNPL that include:
How to ensure customer centricity in BNPL offerings
How can we ensure that BNPL solutions are designed in a way that puts the customer first? A common goal is developing a frictionless experience, but that shouldn’t come at the expense of giving consumers enough information to make responsible borrowing decisions. Make sure to listen for host Jas Shah’s interesting discussion of “positive friction” and Matthias Dekan’s astute observations on the importance of responsible lending.
The value of embedded BNPL
During the livestream, Christian Waldheim points out that customers have very real fatigue when it comes to installing new apps, being introduced to new finance brands, and having to deal with separate products. This important observation kicks off a conversation among the panelists about the benefits of embedded solutions.
New regulations on short-term lending
The panelists discuss pros and cons of new regulations in Europe on short-term lending. Will they help traditional banks and fintechs succeed? Or will the regulations hinder growth?
Opportunity for the use of AI for BNPL solutions
Throughout the discussion, Biljana Petrushevska-Trajkovska highlights multiple use cases where emerging AI technology can help the BNPL market grow and scale.
The need to evolve performance metrics
As BNPL solutions continue to increase in popularity, companies need to move beyond traditional KPIs of basket conversion and basket size, focusing on metrics related to customer loyalty and longevity.
Watch the full livestream today to capture all of these BNPL insights and more. Simply click the play button below, then bookmark the page to rewatch as many times as you’d like.
Then, reach out to the Marqeta team to learn more about how we can help you add BNPL solutions—an essential element of the customer experience—to your offerings.
