A financial business called "Buy Now, Pay Later" (BNPL) enables customers to make purchases and use payment plans to stretch the cost over time. Usually, if payments are made within a certain amount of time, there are no interest or penalties associated with the service. This service offers instant ownership of goods or services with postponed payment, usually divided into equal installments over a few weeks or months, as an alternative to traditional credit. Options to pay later (BNPL) are frequently seen in both physical and virtual retail establishments. Customers who don't want to worry about high-interest credit and prefer ease and budget flexibility will find them appealing.
United Kingdom Buy Now Pay Later Market Driving Factors and Challenges
Driving Factors: Online payment solutions have been increasingly popular during the last decade. Convenience, evolving customer behaviour, financial flexibility, competitive lending rates, seamless integration with e-commerce platforms, increased security measures, smart marketing techniques, and younger generations' tastes all contribute to this transition. The rising use of internet payment systems, particularly BNPL services, is changing how people make payments and manage their accounts. It is likely to continue to shape the financial environment in the future. The growing popularity of online payment in a variety of industries, including as banking, health insurance, retail and consumer goods, has spurred the growth of the global point-of-sale installment loans business. The global boom in e-commerce sales has opened up a significant window of opportunity for the industry to grow throughout the forecast period.
Challenges: There are numerous alternative payment methods available, including post-dated cheques, credit and debit card financing, and many more. Consumers and retailers in several growing markets, like India, Brazil, Asia, and others, are unaware of the BNPL service. Before providing BNPL services to customers, their credit scores must be reviewed. The service provides users with convenient monthly instalment payment options via BNPL. The availability of multiple payment options, as well as a lack of knowledge among consumers, retailers, and merchants, stifle overall growth in the purchase now pay later business.
Impact of COVID-19 on United Kingdom Buy Now Pay Later Market
The COVID-19 pandemic has had a substantial influence on the "Buy Now, Pay Later" (BNPL) business, both globally and in the United Kingdom. Initially, the pandemic caused economic uncertainty and decreased consumer spending, resulting in a momentary halt for some BNPL providers as consumers became more careful with their funds. However, as the epidemic spread, lockdowns and social distancing methods decreased in-person retail possibilities, resulting in a significant shift towards online buying. With more clients opting for flexible payment ways to complete transactions with no upfront costs, the usage of BNPL services has increased as e-commerce activity has grown.
United Kingdom Buy Now Pay Later Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as Klarna, Clearpay, Laybuy, Payl8r, Openpay, PayPal, Zilch, Playter Pay, Zip, Divido, Others
United Kingdom Buy Now Pay Later Market Segmentation:
By Solution: Based on the Solution, United Kingdom Buy Now Pay Later Market is segmented as; Software, Services.
By Enterprise Size: Based on the Enterprise Size, United Kingdom Buy Now Pay Later Market is segmented as; Large Enterprises, Small and Medium Enterprises.
By Gender: Based on the Gender, United Kingdom Buy Now Pay Later Market is segmented as; Male, Female.
By Demographic: Based on the Demographic, United Kingdom Buy Now Pay Later Market is segmented as; Under 18 years, 18-45 years, above 45 years.
By End Use Industry: Based on the End Use Industry, United Kingdom Buy Now Pay Later Market is segmented as; BFSI, Retail & eCommerce, Healthcare, Media & Entertainment, Travel & Tourism, Automotive, Others.
By Region: This research also includes data for London, East Anglia, Southwest, Southeast, Scotland, East Midlands, Yorkshire & Humberside.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.