The latest findings from Juniper Research spotlight a significant leap in the Buy Now, Pay Later (BNPL) sector, projecting the transaction value to swell from $334 billion in 2024 to a whopping $687 billion by 2028. This anticipated growth, exceeding 100%, is underpinned by a blend of market maturity, consumer trust, regulatory advancements, and, notably, an uptick in B2B utilization.
Regulations and B2B BNPL
For BNPL, regulatory shifts are emerging as both a challenge and an opportunity. Denmark has set a precedent by rolling out regulations aimed at bolstering consumer protections. While such measures might temper growth to some extent, they also broaden the BNPL appeal, particularly among older demographics traditionally less represented in the BNPL market.
2023 marked a milestone for B2B BNPL, hitting $14 billion in global spending. This surge is attributed to heightened service awareness and businesses’ quest for alternative credit solutions amidst economic flux. Although B2B BNPL remains a specialized segment, its adoption is poised for growth, offering businesses, especially smaller enterprises, a viable, cost-effective credit alternative.
To capitalize on this burgeoning market, B2B BNPL providers are advised to target businesses grappling with credit access and forge strategic partnerships with B2B marketplaces and ERP systems.
Matt Purnell, a research author at Juniper Research, underscores the importance of adapting to the evolving regulatory environment:
To develop within increasingly regulated markets, providers must adapt to legislation, justify the use of BNPL over traditional credit solutions, and reward consumer loyalty to maintain customer retention.
