Buy now pay later spend to reach $995bn globally in 2026, despite increasing regulation
A new study from Juniper Research has found that spending via buy now pay later services, which are integrated within eCommerce checkout options, including fixed instalment plans and flexible credit accounts, will reach $995 billion (€822.14 billion) in 2026, from $266 billion (€219.79 billion) in 2021.
This 274% growth will be fuelled by a greater appetite from users for credit to spread costs, particularly in the wake of the pandemic, which has put extreme pressure on user finances.
The research identified that, while regulations will inevitably place restrictions on services, such as limiting charges or enforcing affordability checks, these changes will not diminish the appeal or growth of the platforms; merely placing them on a more secure footing. The report recommends that vendors focus on improving the transparency and use of credit assessment and reporting now to minimise future disruption.
Buy now pay later to become highly significant within eCommerce
The new research, Buy Now Pay Later: Vendor Strategies, Regulatory Frameworks & Market Forecasts 2021-2026, found that, by 2026, buy now pay later services will account for over 24% of global eCommerce transactions for physical goods by value, from just 9% in 2021.
Research co-author Damla Sat explains, ‘As a tool to split the cost for users, buy now pay later is ideally suited for high-cost items, as it enables users to seamlessly split large costs into smaller, more manageable payments. By 2026, these platforms will increasingly become the norm for lower-cost purchases as well; driven by user demand and eCommerce platform integrations.’
Buy now pay later users to exceed 1.5 billion in 2026
The research also found that the global number of buy now pay later users will exceed 1.5 billion in 2026, from 340 million in 2021. In turn, the report recommends that eCommerce merchants must integrate buy now pay later services immediately, or risk losing transactions to other payment platforms which offer preferable payment options.
For more insights, download the free whitepaper: Buy Now Pay Later: The Future of eCommerce.