The next wave of BNPL

Summary

Buy now, pay later (BNPL) solutions are reshaping consumer finance, offering flexible payment options at the point of sale and driving significant changes in the global payments landscape. This report, 'The next wave of BNPL,' examines the evolution of BNPL, its market dynamics, and the challenges facing providers, including regulatory pressures, competitive threats from banks and fintechs, and macroeconomic risks. It explores how embedded finance and open banking are influencing BNPL innovation, and details five distinct business models—ranging from BNPL-as-a-Service to vertical-focused large ticket financing. The report also highlights emerging use cases such as AI-powered shopping assistants, BNPL superapps integrating multiple merchants, and the expansion of BNPL into offline retail environments. Key questions addressed include: How are regulatory frameworks evolving across major markets? What are the main competitive and economic risks for BNPL providers? Which business models are gaining traction, and how are embedded finance and open banking shaping the future of BNPL? What innovative applications are providers deploying to enhance customer experience and merchant value? This comprehensive analysis is essential for financial institutions, fintechs, merchants, and investors seeking to understand the next phase of BNPL growth and its implications for the broader payments ecosystem.